BURLINGTON COUNTY INSURANCE COMMISSION AGENDA AND REPORTS JANUARY 04, 2018

Transcription

1 BURLINGTON COUNTY INSURANCE COMMISSION AGENDA AND REPORTS JANUARY 04, 2018 COUNTY ADMINISTRATION BUILDING FREEHOLDER CONFERENCE ROOM 1 FIRST FLOOR 49 RANCOCAS ROAD MT. HOLLY, NJ :00PM 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 Burlington County Times II. III. Filing advance written notice of this meeting with the Commissioners of the Burlington County Insurance Commission; and Posting notice on the Public Bulletin Board of the Office of the County Clerk

2 BURLINGTON COUNTY INSURANCE COMMISSION AGENDA OPEN PUBLIC MEETING: JANUARY 04, RANCOCAS ROAD MT. HOLLY, NJ :00 PM MEETING CALLED TO ORDER - OPEN PUBLIC MEETING NOTICE READ ROLL CALL OF COMMISSIONERS APPROVAL OF MINUTES: December 07, 2017 Open Minutes...Appendix I December 07, 2017 Closed Minutes... Handout CORRESPONDENCE COMMITTEE REPORTS Safety Committee:... Verbal Claims Committee:... Verbal EXECUTIVE DIRECTOR/ADMINISTRATOR PERMA... Pages 2-43 TREASURER Edward J. Troy Resolution January Bill List... Page 44 Resolution January Health Bill List...Pages October Treasurer Monthly Reports...Pages ATTORNEY Robert A. Baxter... Verbal CLAIMS SERVICE PMA Management Corp. Monthly Report... Appendix III CEL SAFETY DIRECTOR J.A. Montgomery Risk Control Monthly Report... Page 49 Safety Director Bulletin Disposal of Improperly Discarded Syringes... Page 50 OLD BUSINESS NEW BUSINESS PUBLIC COMMENT CLOSED SESSION Resolution Closed Session (if needed)......page 51 Motion for Executive Session (in accordance with the Open Public Meetings Act, N.J.S.A. 10:4-12) Motion to Return to Open Session MEETING ADJOURNMENT NEXT SCHEDULED MEETING: FEBRUARY 1, 2018 COUNTY ADMINISTRATION BUILDING 49 RANCOCAS ROAD, MT. HOLLY NJ 08102, 2:00 PM 1

3 BURLINGTON COUNTY INSURANCE COMMISSION 9 Campus Drive, Suite 216 Parsippany, NJ Telephone (201) Fax (201) Date: January 04, 2018 Memo to: From: Commissioners of the Burlington County Insurance Commission PERMA Risk Management Services Subject: Executive Director's Report Reorganization Resolutions (Pages 5-18) - The BCIC is required to reorganize at the January Board of Commissioners meeting as per the Commission By Laws. Listed below are the necessary Reorganization Resolutions which are included in the agenda on pages Resolution 1-18 Certifying the Appointment of Chairperson and Vice Chair Resolution 2-18 Appointing A Commissioner to the New Jersey Counties Excess Joint Insurance Fund for Fund Year 2018 Resolution 3-18 Appointing Agent for Service of Process and Custodian of Records For the Commission For the Year 2018 Resolution 4-18 Designating Official Newspapers for the Commission Resolution 5-18 Designating Authorized Depositories for Fund Assets and Establishing Cash Management Plan Resolution 6-18 Designating Commission Treasurer Resolution 7-18 Designating Authorized Signatures for Commission Bank Accounts Resolution 8-18 Indemnifying Burlington County Insurance Fund Commission Officials/Employees Resolution 9-18 Authorizing Commission Treasurer to Process Contracted Payments And Expenses Resolution Plan of Risk Management for 2018 The 2018 Risk Management Plan is attached in Appendix II of the agenda. The changes are highlighted in yellow. Executive Director will review the changes at the meeting. Motion to approve Reorganization Resolutions Number 1-18 through Property and Casualty Budget (Pages 19-20) At the December 7 th meeting the 2018 Property and Casualty Budget was introduced. In accordance with the regulations, the budget was advertised in the Commission s official newspaper. The Public Hearing for the budget will be held at this meeting. A copy of the 2018 Property & Casualty Budget in the amount of $4,818,311 appears on page 19. The budget was amended slightly to reflect the RFP responses. Also included in the agenda on page 20 is a copy of the assessments by member entity. In accordance with the Commission s By Laws, the assessment bills will be billed in 3 installments and payable as follows: 40% on 3/15/18, 30% on 5/15/18 and 30% on 10/15/18. 2

4 Motion to open the Public Hearing on the 2018 Property & Casualty Budget Discussion of Budget and Assessments Motion to close the Public Hearing Motion to adopt the Property & Casualty Budget for the Burlington County Insurance Commission for the Year 2018 & Certify the 2018 Assessments 2018 Meeting Schedule (Pages 21-22) Attached on page 21 for your consideration is a copy of the BCIC Executive Committee meeting schedule which was presented at our last meeting. The previous schedule indicated there would be no meeting in March, however the Executive Director requested a change. There will be no meetings in April, July and September. However additional meetings can be scheduled with the proper notice. If the schedule is acceptable to the Commissioners we have prepared Resolution for your approval which is included in the agenda on page 22. Motion to approve Resolution 11-18, 2018 Meeting Schedule Professional Service Agreements (Page 23) RFP s and RFQ s were issued for the positions of Executive Director, Actuary, Auditor, Commission Attorney, Third Party Administrator and General Liability and Worker s Compensation Defense Counsel. The responses were due on December 18, A list of the responses received are included in the agenda on page 23. The responses were reviewed and evaluated by the Committee. We are drafting resolutions confirming the recommendations of the Committee which will be available at the meeting. Below are the recommended appointments. Position Actuary Auditor Commission Attorney Executive Director Third Party Administrator Liability Defense Counsel Workers Compensation Defense Counsel Vendor The Actuarial Advantage Bowman & Company, LLP CraigAnninBaxterLaw PERMA PMA Companies Capehart Scatchard Madden & Madden Grace Marmero & Associates, LLP Florio Peruccio Steinhardt & Fader Capehart Scatchard Grace Marmero & Associates, LLP esafety Package Training (Page 24) The Board of Social Services has requested assistance in esaftey s online training program. A copy of the proposal is included in the agenda on page 24. There are two proposals. The three course package is $2,690 and the one package is $2,130. Recently the Commission approved a training program for the County with esafety. Motion to authorize the cost of $ for a Course Package 2018 Training Program through e-safety for the Board of Social Services 3

5 Certificate of Insurance Issuance Report There were no requests for any 2017 certificate of insurances for the month of November. NJ Excess Counties Insurance Fund (NJCE) The NJCE will hold its Re-Organization Meeting on February 22, 2018 at 1:00 PM at the Camden County College Regional Emergency Training Center. BCIC Financial Fast Track (Pages 25-26) Included in the agenda on pages is a copy of the Financial Fast Track for the month of October. NJCE Property and Casualty Financial Fast Track (Pages 27-28) Included in the agenda on pages is a copy of the NJCE Financial Fast Track Report for the month of October. As of October 31, 2017 the NJCE has a surplus of $8,562,766. The cash amount is $24,047,702. Claims Tracking Reports (Pages 29-31) The claims tracking reports are on pages of the agenda. The Executive Director will review the Claims Activity Report and Expected Loss Ratio Analysis Report as of November 30, 2017 with the Commission. Health Benefits Report The Health Benefit Report starts on page 32. 4

6 RESOLUTION NO BURLINGTON COUNTY INSURANCE COMMISSION CERTIFYING THE APPOINTMENT OF CHAIRPERSON AND VICE CHAIRPERSON WHEREAS, the BURLINGTON COUNTY INSURANCE COMMISSION (hereinafter BCIC ) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the BCIC has the authority and deemed it necessary and appropriate to formally reorganize for the 2018 commission year; and NOW THEREFORE by the Burlington County Insurance Commission that the following persons have been appointed as Chairperson and Vice Chair: Kendall J. Collins Eve A. Cullinan Damon Burke Chairman Vice Chair Commissioner BE IT FURTHER RESOLVED that the Chairman, Vice Chair, and Commissioner shall serve for a one year term through the reorganization of the Commission and until their successors shall be elected and qualified. ADOPTED by THE BURLINGTON COUNTY INSURANCE COMMISSION at a properly noticed meeting held on January 4, ADOPTED: BY: KENDALL J. COLLINS, CHAIRMAN ATTEST: 5

7 RESOLUTION NO BURLINGTON COUNTY INSURANCE COMMISSION APPOINTING A COMMISSIONER TO THE NEW JERSEY COUNTIES EXCESS JOINT INSURANCE FUND FOR FUND YEAR 2018 WHEREAS, the BURLINGTON COUNTY INSURANCE COMMISSION (hereinafter BCIC ) 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, Kendall J. Collins is an employee of the County and the Commission having deemed it appropriate to designate Kendall J. Collins as commissioner to the Fund; and NOW THEREFORE BE IT RESOLVED by the Commissioners of said Commission Kendall J. Collins is designated commissioner to the New Jersey Counties Excess Joint Insurance Fund for the Fund year ADOPTED by THE BURLINGTON COUNTY INSURANCE COMMISSION at a properly noticed meeting held on January 4, ADOPTED: BY: KENDALL J. COLLINS, CHAIRMAN ATTEST: 6

8 RESOLUTION NO BURLINGTON COUNTY INSURANCE COMMISSION APPOINTING AGENT FOR SERVICE OF PROCESS AND CUSTODIAN OF RECORDS FOR THE COMMISSION FOR THE YEAR 2018 WHEREAS, the BURLINGTON COUNTY INSURANCE COMMISSION (hereinafter BCIC ) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the BCIC has the authority and deemed it necessary and appropriate to formally reorganize for the 2018 commission year; and NOW THEREFORE be it resolved by the Burlington County Insurance Commission that PERMA Risk Management Services is hereby appointed as agent for service of process upon the BCIC, at its office located at 9 Campus Drive, Suite 216, Parsippany, NJ for the year 2018 or until its successor has been appointed and qualified. Said appointment shall be at no cost to the BCIC. BE IT FURTHER RESOLVED that PERMA Risk Management Services shall also be the Custodian of Records at no cost to the BCIC. ADOPTED by THE BURLINGTON COUNTY INSURANCE COMMISSION at a properly noticed meeting held on January 4, ADOPTED: BY: KENDALL J. COLLINS, CHAIRMAN ATTEST: 7

9 RESOLUTION NO BURLINGTON COUNTY INSURANCE COMMISSION DESIGNATING OFFICIAL NEWSPAPERS FOR THE COMMISSION WHEREAS, the BURLINGTON COUNTY INSURANCE COMMISSION (hereinafter BCIC ) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the BCIC has the authority and deemed it necessary and appropriate to formally reorganize for the 2018 commission year; and BE IT RESOLVED by the Burlington County Insurance Commission, (hereinafter the BCIC) the Burlington County Times is hereby designated as the official newspaper for the Commission and all official notices required to be published shall be published in the newspaper. BE IT FURTHER RESOLVED that the designation of official newspaper shall be effective upon adoption of the within resolution for the term of one year through the 2018 re-organization of the BCIC. BE IT FURTHER RESOLVED that in the case of special meetings or emergency meetings, the Executive Director of the BCIC shall give notice of said meetings to the Burlington County Times. ADOPTED by THE BURLINGTON COUNTY INSURANCE COMMISSION at a properly noticed meeting held on January 4, ADOPTED: BY: KENDALL J. COLLINS, CHAIRMAN ATTEST: 8

10 RESOLUTION NO BURLINGTON COUNTY INSURANCE COMMISSION DESIGNATING AUTHORIZED DEPOSITORIES FOR FUND ASSETS AND ESTABLISHING CASH MANAGEMENT PLAN WHEREAS, the BURLINGTON COUNTY INSURANCE COMMISSION (hereinafter BCIC ) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the BCIC has the authority and deemed it necessary and appropriate to formally reorganize for the 2018 commission year; and NOW THEREFORE BE IT RESOLVED that Investors Bank is hereby designated as the depository for assets of the Fund upon adoption of the within Resolution through 2018 reorganization of the BCIC; and 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 BURLINGTON COUNTY INSURANCE COMMISSION at a properly noticed meeting held on January 4, ADOPTED: BY: KENDALL J. COLLINS, CHAIRMAN ATTEST: 9

11 BURLINGTON COUNTY INSURANCE COMMISSION 2018 CASH MANAGEMENT AND INVESTMENT POLICY 1.) Cash Management and Investment Objectives The BURLINGTON 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 10

12 f.) 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. 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. 11

13 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 Asset managers 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. 12

14 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. 13

15 RESOLUTION NO BURLINGTON COUNTY INSURANCE COMMISSION DESIGNATING COMMISSION TREASURER WHEREAS, the BURLINGTON COUNTY INSURANCE COMMISSION (hereinafter BCIC ) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the BCIC requires the services of a Treasurer, and WHEREAS, Edward J. Troy 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 Edward J. Troy as BCIC Treasurer for the term commencing upon adoption of the within resolution through 2018 BCIC Reorganization; and BE IT FURTHER RESOLVED that Edward J. Troy shall receive no compensation to serve as Treasurer to the BCIC. ADOPTED by THE BURLINGTON COUNTY INSURANCE COMMISSION at a properly noticed meeting held on January 4, ADOPTED: BY: KENDALL J. COLLINS, CHAIRMAN ATTEST: 14

16 RESOLUTION NO BURLINGTON COUNTY INSURANCE COMMISSION DESIGNATING AUTHORIZED SIGNATURES FOR COMMISSION BANK ACCOUNTS BE IT RESOLVED by the Burlington 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 BE IT FURTHER RESOLVED that the 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. Edward J. Troy, Treasurer Kendall J. Collins, Chairman Eve A. Cullinan, Vice Chair ADOPTED by THE BURLINGTON COUNTY INSURANCE COMMISSION at a properly noticed meeting held on January 4, ADOPTED: BY: KENDALL J. COLLINS, CHAIRMAN ATTEST: 15

17 RESOLUTION NO INDEMNIFYING BURLINGTON COUNTY INSURANCE FUND COMMISSION OFFICIALS/EMPLOYEES WHEREAS, the BURLINGTON COUNTY INSURANCE COMMISSION (hereinafter BCIC ) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the BCIC has the authority and deemed it necessary and appropriate to formally reorganize for the 2018 commission year; and NOW THEREFORE BE IT RESOLVED by the BCIC that Commission elected officials, appointed officials, and employees are hereby indemnified in a manner similar to the provisions of N.J.S.A. 59:10-1, et seq. and 59:10A-1 et seq.; and BE IT FURTHER RESOLVED that the aforesaid indemnification shall include the reasonable costs of defense; and BE IT FURTHER RESOLVED that in interpreting the above referenced statutes, all discretion statutorily vested with the State shall be exercised by the BCIC, and all discretion vested with the Attorney General shall be exercised by the BCIC Attorney, subject to review by the BCIC; and BE IT FURTHER RESOLVED that any employee, inclusive of public officials employed by the BCIC, shall be and is hereby indemnified for exemplary or punitive damages resulting from the employee s civil violation of State or Federal law if, in the opinion of the BCIC, the acts committed by the employee, upon which the damages are based, did not constitute actual fraud, actual malice, willful misconduct, or an intentional wrong; and BE IT FURTHER RESOLVED that the aforesaid indemnification shall include the reasonable costs of defense and shall permanently attach to all acts performed during the calendar year 2018 through 2018 BCIC Re-organization, and to all acts performed in all prior years thereto; and BE IT FURTHER RESOLVED that the BCIC may undertake an evaluation of the acts committed by an employee, for the purpose of determining whether the acts constituted actual fraud, actual malice, willful misconduct, or an intentional wrong, at such time as there shall be sufficient factual data available to reach a reasonable determination on the issue, and such determination, based upon the availability of information, may be made either prior to or subsequent to trial or settlement of the matter in question. ADOPTED by THE BURLINGTON COUNTY INSURANCE COMMISSION at a properly noticed meeting held on January 4,

18 ADOPTED: BY: KENDALL J. COLLINS, CHAIRMAN ATTEST: 17

19 RESOLUTION NO BURLINGTON COUNTY INSURANCE COMMISSION AUTHORIZING COMMISSION TREASURER TO PROCESS CONTRACTED PAYMENTS AND EXPENSES WHEREAS, the BURLINGTON County Insurance Commission (hereinafter the Commission ) is duly constituted as an insurance commission and is subject to all applicable laws and regulations of the State of New Jersey; and WHEREAS, the Board of Commissioners has deemed it necessary and appropriate to provide authorization to the Commission Treasurer to pay certain Commission contracted payments and expenses during the month(s) when the Commission does not meet; and WHEREAS, payment by the Commission Treasurer of contracted payments and expenses for the month(s) in which the Commission does not meet shall be ratified by the Commission at its next regularly scheduled meeting; now, therefore, BE IT RESOLVED by the Board of Commissioners of the Burlington County Insurance Commission that the Commission Treasurer is hereby authorized to process the contracted payments and Commission expenses for all months in which the Commission does not meet during the year BE IT FURTHER RESOLVED that the Board of Commissioners of the Burlington County Insurance Commission shall ratify the contracted payments and Commission expenses so paid by the Commission Treasurer pursuant to the Resolution at its next regularly scheduled monthly meeting. ADOPTED by THE BURLINGTON COUNTY INSURANCE COMMISSION at a properly noticed meeting held on January 4, ADOPTED: BY: KENDALL J. COLLINS, CHAIRMAN ATTEST: 18

20 BURLINGT ON COUNT Y INSURANCE COMMISSION 2018 CERTIFIED BUDGET CERTIFIED BUDGET APPROPRIATIONS I. Claims and Excess Insurance Claims 1 Property 102,000 2 Liability 713,000 3 Auto 127,000 4 Workers' Comp. 1,700, Subtotal - Claims 2,642, Premiums 9 NJCE FUND 1,616, SubTotal Premiums 1,616, Total Loss Fund 4,258, II. Expenses, Fees & Contingency Claims Adjustment 116, Safety Director 0 18 General Expense 19 Exec. Director 181, Actuary 7, Auditor 6, Attorney 13, Treasurer Misc. Expense & Contingency 20, Total Fund Exp & Contingency 345, Risk Managers 7, XS JIF Ancilliary Coverage 33 POL/EPL 0 34 XS POL/EPL 0 35 Excess Liability 120, Crime Program 10, Medical Malpractice 31, Pollution Liabilty 12, Employed Lawyers Liab 0 40 Cyber Liability/ Special Coverag 27, Aviation 2, Total FUND Disbursements 4,818,311 19

21 CERTIFIED ASSESSMENTS Assessments by Line Member ID Member Name BCIC NJC Total Property Liability Auto Workers' Comp. NJC E&C RMC Total NJC014 Burlington County 2,371,803 1,481,273 3,853,076 96, , ,951 1,295,730 1,481, , ,853,076 NJC015 Burlington County Bridge Commission 570, , ,921 5, ,950 19, , ,039 74, ,921 NJC016 Burlington County Bd of Social Services 53,047 55, , ,229 55,267 5,998 7, ,314 Grand Totals: 2,995, ,822, ,818, , , , ,700, ,822, , , ,818,

22 BURLINGTON COUNTY INSURANCE COMMISSION 9 Campus Drive, Suite 216 Parsippany, NJ TO: Members of the Commission 2018 ANNUAL MEETING NOTICE Pursuant to Chapter 231, Laws of 1975, known as the Open Public Meeting Acts, the following have been designated as meeting dates of the Burlington County Insurance Commission at which the business of said Commission may be formally discussed, decided or acted upon. TIME DATE LOCATION PURPOSE 2:00 PM January 4, 2018 County Administration Building Re-Organization Meeting 49 Rancocas Road Mt. Holly, NJ :00 PM February 1, 2018 Regular Meeting 2:00 PM March 1, 2018 Regular Meeting 2:00 PM May 3, 2018 Regular Meeting 2:00 PM June 7, 2018 Regular Meeting 2:00 PM August 2, 2018 Regular Meeting 2:00 PM October 4, 2018 Regular Meeting 2:00 PM November 1, 2018 Regular Meeting 2:00 PM December 6, 2018 Regular Meeting In addition such other meetings as may be required shall be scheduled and held, but pursuant to and with such additional notice as may be required by statute. By: PERMA Risk Management Services Administrator BURLINGTON COUNTY INSURANCE COMMISSION 21

23 RESOLUTION NO BURLINGTON COUNTY INSURANCE COMMISSION 2018 REGULAR MEETINGS SCHEDULE WHEREAS, the BURLINGTON COUNTY INSURANCE COMMISSION (hereinafter GCIC ) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the Open Public Meetings Act of the State of New Jersey, N.J.S.A.10:4-6 et seq. requires public bodies to adopt an annual schedule of regular meetings and to furnish the public with notice of said schedule in a manner more specifically said forth in said Act; and NOW THEREFORE BE IT RESOLVED by the Commissioners of said Burlington County Insurance Commission as follows: 1. The schedule of regular meetings of the BCIC for the year 2018 annexed hereto and made a part hereof be and is hereby adopted; 2. Copies of said annual schedule of regular meetings shall be posted and shall continue to be posted throughout the year on the bulletin board in the vestibule of the Administration Building, Mt. Holly, New Jersey and on the BCIC website; 3. Copies of said annual schedule of regular meetings shall be provided to the Burlington County Times for publication; 4. A copy of said annual schedule of regular meetings shall be filed with the Burlington County Clerk. ADOPTED by THE BURLINGTON COUNTY INSURANCE COMMISSION at a properly noticed meeting held on January 04, ADOPTED: KENDALL J. COLLINS, CHAIRMAN ATTEST: 22

24 BURLINGTON COUNTY INSURANCE COMMISSION RFP PROPOSALS DUE DECEMBER 18, 2017 AT 3:00 PM OPENING AT PARSIPPANY OFFICE The opening of the RFP Proposals for the Burlington County Insurance Commission took place at 3:00 PM at the Parsippany office. The responses were opened by Cathy Dodd as follows: Position Response Defense Panel Commission Attorney Auditor Actuary Third Party Administrators Executive Director Madden & Madden Capehart Scatchard Florio Perrucci Steinhardt Grace Marmero & Associates, LLP Craig Annin & Baxter, LLP Bowman & Company, LLP The Actuarial Advantage PMA PERMA, LLC (sealed envelope sent to R. Baxter) 23

25 24

26 BURLINGTON COUNTY INSURANCE COMMISSION FINANCIAL FAST TRACK REPORT AS OF October 31, 2017 ALL YEARS COMBINED THIS MONTH YTD CHANGE PRIOR YEAR END FUND BALANCE 1. UNDERWRITING INCOME 381,533 3,815,329 22,595,264 26,410, CLAIM EXPENSES Paid Claims 148,859 2,131,406 7,248,517 9,379,922 Case Reserves 63, ,280 3,407,852 3,878,132 IBNR 17,875 13,846 2,066,654 2,080,500 Discounted Claim Value (1,505) 12,420 (126,007) (113,587) TOTAL CLAIMS 228,637 2,627,952 12,597,015 15,224, EXPENSES Excess Premiums 148,466 1,484,662 9,358,931 10,843,593 Administrative 27, ,089 1,722,146 2,000,235 TOTAL EXPENSES 175,547 1,762,751 11,081,078 12,843, UNDERWRITING PROFIT (1-2-3) (22,651) (575,374) (1,082,829) (1,658,202) 5. INVESTMENT INCOME 3,248 25,506 74,292 99, PROFIT (4 + 5) (19,403) (549,868) (1,008,537) (1,558,405) 7. CEL APPROPRIATION CANCELLATION 0 0 4,958 4, DIVIDEND INCOME DIVIDEND EXPENSE INVESTMENT IN JOINT VENTURE 1,571 45, , , SURPLUS ( ) (17,832) (504,517) (321,120) (825,637) SURPLUS (DEFICITS) BY FUND YEAR (42,742) 787, , ,859 (289,908) (208,049) (203,103) (238,202) (441,305) 2015 (1,381) (102,328) (346,492) (448,820) 2016 (1,783) (84,300) (234,478) (318,778) 2017 (16,071) (153,902) (153,902) TOTAL SURPLUS (DEFICITS) (17,832) (504,517) (321,120) (825,636) TOTAL CASH 4,054,491 25

27 CLAIM ANALYSIS BY FUND YEAR FUND YEAR 2012 AS OF Paid Claims 6,695 92,742 1,580,568 1,673,310 Case Reserves (8,446) (11,546) 177, ,963 IBNR 1,751 (37,891) 64,597 26,706 Discounted Claim Value 0 1,757 (3,715) (1,958) TOTAL FY 2012 CLAIMS 0 45,062 1,818,959 1,864,021 FUND YEAR 2013 Paid Claims (49,888) 124,301 1,907,330 2,031,632 Case Reserves (13,802) (223,148) 784, ,996 IBNR 63,900 25,234 82, ,698 Discounted Claim Value 0 5,856 (15,954) (10,097) TOTAL FY 2013 CLAIMS 210 (67,757) 2,757,985 2,690,229 FUND YEAR 2014 Paid Claims 21, ,860 1,290,190 1,826,050 Case Reserves (41,449) (221,177) 758, ,694 IBNR 20,409 (116,780) 575, ,440 Discounted Claim Value 0 10,374 (29,038) (18,665) TOTAL FY 2014 CLAIMS (25) 208,277 2,595,242 2,803,519 FUND YEAR 2015 Paid Claims 31, ,373 1,580,690 1,877,064 Case Reserves (8,554) (98,664) 840, ,699 IBNR (21,000) (83,114) 279, ,639 Discounted Claim Value 0 4,500 (26,688) (22,188) TOTAL FY 2015 CLAIMS 1, ,094 2,674,119 2,793,213 FUND YEAR 2016 Paid Claims 21, , ,738 1,429,769 Case Reserves (14,479) 129, , ,585 IBNR (4,653) (569,428) 1,064, ,192 Discounted Claim Value 0 13,356 (50,612) (37,256) TOTAL FY 2016 CLAIMS 2, ,580 2,750,710 2,864,291 FUND YEAR 2017 BURLINGTON COUNTY INSURANCE COMMISSION FINANCIAL FAST TRACK REPORT October 31, 2017 ALL YEARS COMBINED Paid Claims 118, , ,097 Case Reserves 150, , ,195 IBNR (42,532) 795, ,825 Discounted Claim Value (1,505) (23,423) (23,423) TOTAL FY 2017 CLAIMS 224,372 2,209, ,209,695 COMBINED TOTAL CLAIMS 228,637 2,627,952 12,597,015 15,224,967 This report is based upon information which has not been audited nor certified by an actuary and as such may not truly represent the condition of the fund. 26

28 NEW JERSEY COUNTIES EXCESS JIF FINANCIAL FAST TRACK REPORT AS OF October 31, 2017 ALL YEARS COMBINED THIS YTD PRIOR FUND MONTH CHANGE YEAR END BALANCE 1. UNDERWRITING INCOME 1,755,721 17,557,208 97,465, ,023, CLAIM EXPENSES Paid Claims 38, ,671 2,721,199 3,230,870 Case Reserves (157,302) 990,273 2,624,454 3,614,727 IBNR 414,036 1,319,083 9,575,203 10,894,286 Discounted Claim Value (14,394) (94,684) (715,004) (809,687) TOTAL CLAIMS 280,491 2,724,344 14,205,852 16,930, EXPENSES Excess Premiums 1,324,972 13,111,723 67,102,915 80,214,638 Administrative 132,868 1,305,784 7,163,639 8,469,423 TOTAL EXPENSES 1,457,840 14,417,507 74,266,554 88,684, UNDERWRITING PROFIT (1-2-3) 17, ,357 8,993,494 9,408, INVESTMENT INCOME 2,036 32, , , PROFIT (4+5) 19, ,603 9,222,714 9,670, Dividend 200, , , , Cancelled Appropriations , , SURPLUS (6-7-8) (180,574) 247,603 8,315,163 8,562,766 SURPLUS (DEFICITS) BY FUND YEAR (99,920) (244,057) 722, ,075 (99,866) 12, , , (14,238) 554, , ,980 1,277,188 1,368, (3,308) 2,048,737 2,045, , ,944 1,159, ,492 1,801,366 2,063,858 17,804 (25,842) (25,842) 2017 TOTAL SURPLUS (DEFICITS) (180,574) 247,603 8,315,163 8,562,765 TOTAL CASH 24,047,702 27

29 CLAIM ANALYSIS BY FUND YEAR NEW JERSEY COUNTIES EXCESS JIF FINANCIAL FAST TRACK REPORT AS OF October 31, 2017 ALL YEARS COMBINED FUND YEAR 2010 Paid Claims , ,165 Case Reserves (410) 84, ,836 IBNR 0 70, , ,999 Discounted Claim Value 0 (10,134) (2,805) (12,938) TOTAL FY 2010 CLAIMS 0 145, , ,061 FUND YEAR 2011 Paid Claims 2,960 32, , ,227 Case Reserves (2,960) (60,335) 407, ,037 IBNR 0 (87,225) 380, ,736 Discounted Claim Value 0 5,376 (39,146) (33,770) TOTAL FY 2011 CLAIMS 0 (109,624) 1,145,854 1,036,230 FUND YEAR 2012 Paid Claims 3, ,260 1,132,971 1,461,231 Case Reserves (7,793) (228,806) 430, ,656 IBNR 4,644 (101,957) 844, ,112 Discounted Claim Value 0 19,383 (69,604) (50,221) TOTAL FY 2012 CLAIMS 0 16,881 2,337,897 2,354,778 FUND YEAR 2013 Paid Claims 4,010 (219,679) 516, ,748 Case Reserves (248,320) 148, , ,704 IBNR 244,311 (4,295) 1,009,843 1,005,548 Discounted Claim Value 0 (11,573) (86,001) (97,575) TOTAL FY 2013 CLAIMS 0 (86,573) 2,063,999 1,977,425 FUND YEAR 2014 Paid Claims 3,372 88, , ,553 Case Reserves 81, , , ,731 IBNR (84,791) (443,445) 1,750,161 1,306,716 Discounted Claim Value 0 13,723 (101,570) (87,847) TOTAL FY 2014 CLAIMS 0 8,723 2,058,430 2,067,153 FUND YEAR 2015 Paid Claims 0 97, , ,469 Case Reserves 5, ,006 1,021,082 1,252,087 IBNR (5,000) (523,814) 2,311,258 1,787,443 Discounted Claim Value 0 31,684 (204,420) (172,736) TOTAL FY 2015 CLAIMS 0 (163,316) 3,370,580 3,207,264 FUND YEAR 2016 Paid Claims Case Reserves 1 250, ,116 IBNR (1) (539,028) 3,113,912 2,574,884 Discounted Claim Value 0 33,338 (211,458) (178,120) TOTAL FY 2016 CLAIMS 0 (255,662) 2,902,542 2,646,880 FUND YEAR 2017 Paid Claims 24, , ,477 Case Reserves 15, , ,560 IBNR 254,874 2,948,848 2,948,848 Discounted Claim Value (14,394) (176,480) (176,480) TOTAL FY 2017 CLAIMS 280,491 3,168, ,168,405 COMBINED TOTAL CLAIMS 280,491 2,724,344 14,205,852 16,930,196 This report is based upon information which has not been audited nor certified by an actuary and as such may not truly represent the condition of the fund. 28

30 AS OF November 30, 2017 CLAIM ACTIVITY REPORT C O V E R A G E L I N E - PROPERTY C L A I M C O U N T - O P E N C L A I M S Year TOTAL October November NET CHGE Limited Reserves $16,636 Year TOTAL October-17 $0 $0 $0 $0 $0 $0 $0 $25,000 $25,000 November-17 $0 $0 $0 $0 $0 $0 $0 $33,273 $33,273 NET CHGE $0 $0 $0 $0 $0 $0 $0 $8,273 $8,273 Ltd Incurred $0 $0 $59,388 $0 $2,109 $166,308 $357,306 $149,968 $735,078 C O V E R A G E L I N E - GENERAL LIABILITY C L A I M C O U N T - O P E N C L A I M S Year TOTAL October November NET CHGE Limited Reserves $20,172 Year TOTAL October-17 $0 $0 $120,041 $118,309 $432,479 $92,478 $175,739 $182,882 $1,121,927 November-17 $0 $0 $115,640 $42,325 $384,821 $300,999 $341,691 $186,189 $1,371,665 NET CHGE $0 $0 ($4,401) ($75,983) ($47,658) $208,521 $165,952 $3,307 $249,738 Ltd Incurred $0 $0 $568,177 $406,014 $1,196,238 $632,617 $459,203 $211,575 $3,473,823 C O V E R A G E L I N E - AUTO LIABILITY C L A I M C O U N T - O P E N C L A I M S Year TOTAL October November NET CHGE Limited Reserves $8,468 Year TOTAL October-17 $0 $0 $0 $0 $21,244 $16,763 $26,332 $32,369 $96,707 November-17 $0 $0 $0 $0 $20,038 $14,851 $26,149 $40,578 $101,615 NET CHGE $0 $0 $0 $0 ($1,205) ($1,913) ($183) $8,209 $4,908 Ltd Incurred $0 $0 $7,877 $41,428 $305,876 $70,020 $116,876 $121,904 $663,982 C O V E R A G E L I N E - WORKERS COMP. C L A I M C O U N T - O P E N C L A I M S Year TOTAL October November NET CHGE Limited Reserves $30,295 Year TOTAL October-17 $0 $0 $45,922 $442,687 $83,971 $632,458 $774,514 $654,944 $2,634,497 November-17 $0 $0 $46,656 $461,203 $80,889 $712,539 $747,704 $586,644 $2,635,635 NET CHGE $0 $0 $734 $18,515 ($3,082) $80,081 ($26,811) ($68,300) $1,138 Ltd Incurred $0 $0 $1,262,493 $2,068,766 $811,605 $2,083,388 $1,663,014 $1,027,255 $8,916,520 T O T A L A L L L I N E S C O M B I N E D C L A I M C O U N T - O P E N C L A I M S Year TOTAL October November NET CHGE Limited Reserves $24,510 Year TOTAL October-17 $0 $0 $165,963 $560,996 $537,694 $741,699 $976,585 $895,195 $3,878,132 November-17 $0 $0 $162,296 $503,528 $485,749 $1,028,388 $1,115,543 $846,683 $4,142,187 NET CHGE $0 $0 ($3,667) ($57,468) ($51,945) $286,690 $138,958 ($48,512) $264,056 Ltd Incurred $0 $0 $1,897,935 $2,516,207 $2,315,827 $2,952,333 $2,596,399 $1,510,702 $13,789,403 29

31 FUND YEARS Burlington County Insurance Commission CLAIMS MANAGEMENT REPORT EXPECTED LOSS RATIO ANALYSIS AS OF November 30, 2017 FUND YEAR LOSSES CAPPED AT RETENTION Current 35 Last Month 34 Last Year 23 Budget Unlimited Limited Actual MONTH Unlimited Limited Actual MONTH Unlimited Limited Actual MONTH Incurred Incurred 30-Nov-17 TARGETED Incurred Incurred 31-Oct-17 TARGETED Incurred Incurred 29-Nov-16 TARGETED PROPERTY 117, , , % 117, % 166, , % 117, % 166, , % 116, % GEN LIABILITY 300, , , % 268, % 393, , % 266, % 278, , % 234, % AUTO LIABILITY 68,000 70,020 70, % 58, % 70,020 70, % 58, % 65,367 65, % 51, % WORKER'S COMP 1,732,504 2,083,388 2,083, % 1,696, % 1,964,003 1,964, % 1,692, % 1,913,756 1,913, % 1,606, % TOTAL ALL LINES 2,217,504 2,952,333 2,952, % 2,140, % 2,593,668 2,593, % 2,134, % 2,424,344 2,424, % 2,008, % NET PAYOUT % $1,923, % FUND YEAR LOSSES CAPPED AT RETENTION Current 23 Last Month 22 Last Year 11 Budget Unlimited Limited Actual MONTH Unlimited Limited Actual MONTH Unlimited Limited Actual MONTH Incurred Incurred 30-Nov-17 TARGETED Incurred Incurred 31-Oct-17 TARGETED Incurred Incurred 29-Nov-16 TARGETED PROPERTY 98, , , % 97, % 357, , % 96, % 387, , % 84, % GEN LIABILITY 368, , , % 287, % 280, , % 283, % 236, , % 180, % AUTO LIABILITY 74, , , % 55, % 119, , % 54, % 122, , % 33, % WORKER'S COMP 1,789,699 1,663,014 1,663, % 1,659, % 1,683,238 1,683, % 1,642, % 936, , % 930, % TOTAL ALL LINES 2,329,699 2,596,399 2,596, % 2,099, % 2,441,113 2,441, % 2,077, % 1,683,461 1,683, % 1,228, % NET PAYOUT % $1,480, % FUND YEAR LOSSES CAPPED AT RETENTION Current 11 Last Month 10 Last Year -1 Budget Unlimited Limited Actual MONTH Unlimited Limited Actual MONTH Unlimited Limited Actual MONTH Incurred Incurred 30-Nov-17 TARGETED Incurred Incurred 31-Oct-17 TARGETED Incurred Incurred 29-Nov-16 TARGETED PROPERTY 80, , , % 68, % 130, , % 60, % 0 0 N/A N/A N/A GEN LIABILITY 584, , , % 286, % 204, , % 245, % 0 0 N/A N/A N/A AUTO LIABILITY 102, , , % 46, % 94,743 94, % 41, % 0 0 N/A N/A N/A WORKER'S COMP 1,696,635 1,027,255 1,027, % 882, % 1,021,742 1,021, % 712, % 0 0 N/A N/A N/A TOTAL ALL LINES 2,464,372 1,510,702 1,510, % 1,283, % 1,450,842 1,450, % 1,060, % 0 0 N/A N/A N/A 30

32 FUND YEARS Burlington County Insurance Commission CLAIMS MANAGEMENT REPORT EXPECTED LOSS RATIO ANALYSIS AS OF November 30, 2017 FUND YEAR LOSSES CAPPED AT RETENTION Current 71 Last Month 70 Last Year 59 Budget Unlimited Limited Actual MONTH Unlimited Limited Actual MONTH Unlimited Limited Actual MONTH Incurred Incurred 30-Nov-17 TARGETED Incurred Incurred 31-Oct-17 TARGETED Incurred Incurred 29-Nov-16 TARGETED PROPERTY 124,180 59,388 59, % 124, % 59,388 59, % 124, % 59,388 59, % 124, % GEN LIABILITY 219, , , % 212, % 568, , % 212, % 431, , % 212, % AUTO LIABILITY 68,206 7,877 7, % 66, % 7,877 7, % 66, % 7,877 7, % 65, % WORKER'S COMP 2,058,826 1,292,760 1,262, % 2,058, % 1,320,967 1,320, % 2,058, % 1,362,479 1,362, % 2,055, % TOTAL ALL LINES 2,470,664 1,928,202 1,897, % 2,461, % 1,956,409 1,956, % 2,461, % 1,861,411 1,861, % 2,458, % NET PAYOUT % $1,735, % FUND YEAR LOSSES CAPPED AT RETENTION Current 59 Last Month 58 Last Year 47 Budget Unlimited Limited Actual MONTH Unlimited Limited Actual MONTH Unlimited Limited Actual MONTH Incurred Incurred 30-Nov-17 TARGETED Incurred Incurred 31-Oct-17 TARGETED Incurred Incurred 29-Nov-16 TARGETED PROPERTY 126, % 126, % % 126, % % 126, % GEN LIABILITY 223, , , % 217, % 481, , % 217, % 495, , % 213, % AUTO LIABILITY 69,570 41,428 41, % 66, % 41,428 41, % 66, % 41,428 41, % 64, % WORKER'S COMP 1,804,203 2,068,766 2,068, % 1,801, % 2,041,285 2,041, % 1,801, % 2,133,806 2,133, % 1,792, % TOTAL ALL LINES 2,224,277 2,516,207 2,516, % 2,212, % 2,563,730 2,563, % 2,211, % 2,671,093 2,671, % 2,196, % NET PAYOUT % $2,012, % FUND YEAR LOSSES CAPPED AT RETENTION Current 47 Last Month 46 Last Year 35 Budget Unlimited Limited Actual MONTH Unlimited Limited Actual MONTH Unlimited Limited Actual MONTH Incurred Incurred 30-Nov-17 TARGETED Incurred Incurred 31-Oct-17 TARGETED Incurred Incurred 29-Nov-16 TARGETED PROPERTY 126,664 2,109 2, % 126, % 2,109 2, % 126, % 2,109 2, % 126, % GEN LIABILITY 223,841 1,196,238 1,196, % 213, % 1,196,238 1,196, % 212, % 896, , % 200, % AUTO LIABILITY 69, , , % 64, % 305, , % 63, % 382, , % 60, % WORKER'S COMP 1,690, , , % 1,679, % 811, , % 1,678, % 754, , % 1,654, % TOTAL ALL LINES 2,110,361 2,315,827 2,315, % 2,083, % 2,315,669 2,315, % 2,081, % 2,035,974 2,035, % 2,042, % NET PAYOUT % $1,830, % 31

33 Date: January 4, 2018 BURLINGTON COUNTY INSURANCE COMMISSION 9 Campus Drive, Suite 216 Parsippany, NJ Telephone (201) Fax (201) Memo to: From: Subject: Commissioners of the Burlington County Insurance Commission PERMA Risk Management Services Health Benefit Reports EXECUTIVE DIRECTOR S REPORT FINANCIAL PROCEDURES Financial Fast Track Attached is the health program income statement for November 2017, (page 33) 2018 Risk Management Plan Enclosed is the 2018 Risk Management Plan for the Health program that has been updated with the new stop loss arrangement. Motion: Motion to approve Resolution # approving the Risk Management Plan for the health program for 2018, as submitted. 32

34 BURLINGTON COUNTY INSURANCE COMMISSION-HIF FINANCIAL FAST TRACK REPORT AS OF November 30, 2017 THIS YTD PRIOR FUND MONTH CHANGE YEAR END BALANCE 1. UNDERWRITING INCOME 3,866,918 43,751,973 60,972, ,723, CLAIM EXPENSES Paid Claims 3,876,619 39,662,179 50,192,582 89,854,761 IBNR (260,707) (913,506) 5,167,670 4,254,164 Less Specific Excess - (656,318) (1,832,170) (2,488,488) Less Aggregate Excess TOTAL CLAIMS 3,615,913 38,092,355 53,528,082 91,620, EXPENSES MA & HMO Premiums 111, , ,324 1,305,078 Excess Premiums 102,824 1,320,030 2,129,107 3,449,137 Administrative 199,250 2,395,024 3,699,803 6,094,827 TOTAL EXPENSES 413,169 4,498,807 6,350,234 10,849, UNDERWRITING PROFIT (1-2-3) (162,164) 1,160,811 1,093,684 2,254, INVESTMENT INCOME 2,124 14,099 10,528 24, DIVIDEND INCOME STATUTORY PROFIT (4+5+6) (160,040) 1,174,910 1,104,212 2,279, DIVIDEND STATUTORY SURPLUS (7-8) (160,040) 1,174,910 1,104,212 2,279,122 SURPLUS (DEFICITS) BY FUND YEAR 2015 Surplus ,464 1,111,020 1,216,484 Cash ,037 1,153,387 1,212, Surplus 275,569 2,613,941 (6,808) 2,607,133 Cash 25,569 (2,161,407) (133,374) (2,294,781) 2017 Surplus (435,858) (1,544,494) (1,544,494) Cash (387,752) 3,154,573 3,154,573 TOTAL SURPLUS (DEFICITS) (160,040) 1,174,910 1,104,212 2,279,122 TOTAL CASH (361,934) 1,052,203 1,020,013 2,072,215 CLAIM ANALYSIS BY FUND YEAR FUND YEAR 2015 Paid Claims - (56,222) 16,722,814 16,666,591 IBNR - (46,427) 46,427 (0) Less Specific Excess - 0 (50,636) (50,636) Less Aggregate Excess TOTAL FY 2015 CLAIMS - (102,649) 16,718,605 16,615,955 FUND YEAR 2016 Paid Claims (25,286) 2,202,854 33,469,768 35,672,622 IBNR (250,000) (4,871,243) 5,121, ,000 Less Specific Excess 0 56,814 (1,781,534) (1,724,720) Less Aggregate Excess TOTAL FY 2016 CLAIMS (275,286) (2,611,576) 36,809,478 34,197,902 FUND YEAR 2017 Paid Claims 3,901,905 37,515,547 37,515,547 IBNR (10,707) 4,004,164 4,004,164 Less Specific Excess 0 (713,132) (713,132) Less Aggregate Excess TOTAL FY 2017 CLAIMS 3,891,199 40,806,579 40,806,579 COMBINED TOTAL CLAIMS 3,615,913 38,092,355 53,528,082 91,620,437 This report is based upon information which has not been audited nor certified by an actuary and as such may not truly represent the condition of the fund. 33

35 BURLINGTON COUNTY INSURANCE COMMISSION HEALTH BENEFITS RISK MANAGEMENT PLAN Effective: JANUARY 1, 2018 Adopted: JANUARY 04,

36 RESOLUTION NO BURLINGTON COUNTY INSURANCE COMMISSION 2018 HEALTH BENEFITS RISK MANAGEMENT PLAN NOW, THEREFORE, BE IT RESOLVED that the following shall be the Commission s Risk Management Plan for the 2018 Commission year for health benefits: 1.) COVERAGE OFFERED Medical The Commission offers a point of service and open access plan designs. These plans have both in network and out of network benefit. The Commission can offer other plans as may meet the needs of the members. The Commission also offers low cost plans to allow members options to comply with contribution requirements under Chapter 78. The Commission will also offer Medicare Advantage programs and/or Medicare Supplement programs.. Dental The Commission plans to offer customized dental plans as required by the members but does not do so at the current time. Prescription The Commission offers customized prescription plans as required by the members, including plans that are coordinated with the low cost medical plan options. Vision The Commission plans to offer customized vision plans as required by the members but does not do so at this time. 2.) LIMITS OF COVERAGE Limits of coverage vary by member and plan design. 3.) RISK RETAINED BY THE COMMISSION Medical and Rx 35

37 Specific Retention: $300,000 with following claims that are lasered at higher retentions: Aggregating Specific Deductible $130,000 Claimant 1 $400,000 Claimant 2 $350,000 Claimant 3 $400,000 Claimant 4 $400,000 Aggregate Retention: $66,141,415 (131.36% of budgeted claims) 4.) ASSUMPTIONS AND METHODOLOGY TO CALCULATE CLAIM RESERVES. For school district members, the Commission complies with statutory accounting standards and establishes reserves on the probable total claim costs as of the end of each Commission year. Each month, the accrual in the general ledger for claim reserves, including IBNR, is adjusted based on earned underwriting income and the number of months since the inception of the Commission year. This accrual is then adjusted at the end of the year in accordance with the actuary s projections. For the County and Burlington and the Burlington County Bridge Commission, accounting of claims shall be on a paid basis and shall not include the accrual of IBNR. Because of differing methods of handling claim reserves, two separate self-insured accounts shall be maintained. One for school district members with accruals for claim reserves, and one for the County and Bridge Commission excluding claim reserves. The respective members within each arrangement shall be responsible for surpluses and deficits only for the self-insured account that they participate in. 5.) METHODS OF ASSESSING CONTRIBUTIONS TO MEMBERS At least one month before the end of the year, the Commission adopts a budget for the upcoming year based on the most recent census. Per employee rates are computed for each line of coverage for each Commission member, and are approved by the Commission as a part of the budget adoption and rate certification process. These rates are used to compute the members monthly assessment based on the updated census, and are provided to the members approximately 15 days before the beginning of the month. The billing also includes the member s updated census for verification each month by the local entity. Retroactive adjustments for enrollment changes are limited to 2 months. Former participants (COBRA, Conversion, Dependents to Age 31 and some retirees) are billed directly by the Commission s enrollment vendor. 6.) COVERAGE PURCHASED FROM INSURERS 36

38 The Commission provides medical and Rx coverage on a self-insured basis, and secures excess insurance to cap the Commissions specific (i.e. per enrolled covered person per policy year) retention and aggregate retention. The Commission also purchases Medicare Advantage and Employer Group Waiver Programs from the commercial market for Medicare retirees. 7.) THE INITIAL AND RENEWAL RATING METHODOLOGIES Upon application to the Commission, the prospective member s benefit program is reviewed by the actuary to determine its projected claim cost. In this evaluation, the actuary takes into consideration: a.) age/sex factor as compared to the average for the existing Commission membership; b.) the plan of benefits for the prospective member; and c.) loss data if available. The actuary then recommends a relativity factor to either the Commission s base rates or to the rates being paid by the entity. This recommendation requires Commission approval before the prospective member is admitted to the Commission. Rates for all members are adjusted at the beginning of each Commission year to reflect the new budget. However, entities operating on a fiscal year basis (July 1 to June 30) have the option to receive rates that are certified for a period corresponding to their fiscal year. Rates reflect the overall cash flow needs of the Commission, and actuarial factors needed to assure that individual entity rates reflect the risk profile of the member. The Commission may implement individual entity loss ratio adjustments based upon recommendations from the Commission actuary. The Commission may also adopt mid Commission year rate changes to reflect changes in plan design, participation in lines of coverage, or a budget amendment. Additionally, if a member terminates a line of coverage but continues membership for other lines of coverage, the rates for the other lines of coverage may be adjusted and the member shall not be eligible for membership in the dropped line of coverage for a three year period. Loss experience data used by the Commission to determine loss ratio adjustments will be made available twice per year to members at no additional cost. Loss experience data is defined as monthly claims and assessments for a three year period including de-identified specific claims at 50% of the Commission s self insured retention. Requests for additional claims data from Commission members will be considered based upon the availability of data, the feasibility of extracting the data, and conditioned upon the member reimbursing the Commission or its vendors for data extraction and formatting costs. 8.) FACTORS IF RATES FOR MEMBERS JOINING THE COMMISSION DURING A COMMISSION YEAR ARE TO BE ADJUSTED. Unless otherwise authorized as part of the offer of membership, where a member joins during a Commission year, the member s initial rates are only valid through the end of that Commission year or, for schools, fiscal year, at which time the rates are adjusted for all members to reflect the new budget. 10.) PROVISION FOR PLAN DESIGN OPTIONS 37

39 The Commission offers employees the option of selecting various plans depending upon member bargaining agreements. Generally, it is the policy of the Commission to encourage selection of lower cost plan designs as opposed to traditional indemnity plans, and the Commission provides promotional material to assist members in employee communication programs concerning optional plan designs. 11.) OPEN ENROLLMENT PROCEDURES Open enrollment periods shall be scheduled by the Commission at least yearly for each member and as is otherwise required to comply with plan document requirements and to effectuate plan design, network changes, and plan migrations. 12.) COBRA AND CONVERSION OPTIONS The Commission provides COBRA coverage at a rate equal to the member s current rate and benefit plan design, plus the appropriate administrative charge. The Commission has arranged for a COBRA administrator to enroll eligible participants and to collect the premium. The Commission s coverage for individuals covered under COBRA shall terminate effective the date the member withdraws from the Commission, or otherwise ceases to be a member of the Commission. 13.) DISCLOSURE OF BENEFIT LIMITS The Commission discloses benefit limits in plan booklets provided to all covered employees. 14.) PARTICIPATION RULES WHEN ALL OR PART OF THE PREMIUM IS DERIVED FROM EMPLOYEE CONTRIBUTIONS All assessments, including additional assessments and dividends, are the responsibility of the member, not the employee or former employee. Employee contributions, if any, are solely an internal policy of the member which shall not impact on the member s obligations to the Commission or confer any additional rights to the employees. Where the Commission directly bills an employee, (i.e. COBRA, etc.), this shall be considered as a service to reduce the member s administrative burden, and the member shall be responsible in the event of non-payment. 15.) RETIREES The Commission duplicates coverage for eligible retirees. The Commission s coverage of a retiree shall terminate effective the date the member local unit withdraws from the Commission, or otherwise ceases to be a member of the Commission. 16.) NEWBORN CHILDREN All plan documents will have the following language: 38

40 You may remove family members from the policy at any time, but you may only add members within sixty (60) days of the change in family status (marriage, birth of a child, etc.). It is your responsibility to notify your employer of needed changes. If family members cease to be eligible, claims will not be paid. The actual change in coverage (and the corresponding change in premium) will not take place until you have formally requested that change. Newborn children, but not grandchildren of an eligible employee, shall be automatically covered from birth for thirty-one (31) days, even if not enrolled within the required sixty (60) days. In the event of an eligible dependent giving birth to a child, (a grandchild) benefits for any hospital length of stay in connection with childbirth for the mother or newborn grandchild will apply for up to 48 hours following a vaginal delivery, or 96 hours following a cesarean section. However, the mother's or newborn grandchild's attending provider, after consulting with the mother, may discharge the mother or her newborn grandchild earlier than 48 hours (or 96 hours as applicable). 17.) PLAN DOCUMENT The Commission prepares a detailed plan document for each member local unit (or each employee bargaining group within a member local unit as the case may be), and an employee handbook provides a summary of the coverage provided by the plan. Each booklet (or certificate) shall contain at least the following information and be provided to all covered employees within thirty (30) days of coverage being effective. A.) General Information Enrollment procedures and eligibility. Dependent eligibility. When coverage begins. When can coverage be changed. When does coverage end. COBRA provisions. Conversion privilege. B.) Benefits Definitions. Description of benefits. Eligible services and supplies. Deductibles and co-payments. Examples as needed. Exclusions. Retiree coverage, before age 65 or after (if any). C.) Claims Procedures Submission of claim. Proof of loss. 39

41 Appeal procedures. D.) Cost Containment Programs Pre-admission. Second surgical opinion. Other cost containment programs. Application and level of employee penalties. 18.) PROCEDURES FOR THE CLOSURE OF COMMISSION YEARS Approximately six months after the end of a Commission year, the Commission evaluates the results to determine if dividends or additional assessments are warranted. Most claims are paid within twelve months of year end, and at that time the Commission begins to consider closing the year, unless excess insurance recoveries are pending or litigation is likely. The Commission has determined that maintaining and retaining a surplus equal to two (2) months of the current year claim expenses is a benchmark prior to a dividend being declared from surplus generated by claims operations. A member entity will be eligible to participate in the dividend provided that its pro rata share of the Commission s surplus account is greater than two (2) months of said member entity s projected claims expense (the retention amount ) and shall be paid from amounts in excess of the established retention amount. When the Commission determines that a Commission year should be closed: A reserve is established by the actuary to cover any unpaid claims or IBNR The Commission decides on the final dividend or supplemental assessment. A closure resolution is adopted transferring all remaining assets and liabilities of that Commission year to the Closed Commission Year/Contingency Account. Each member s pro rata share of the residual assets are computed and added to its existing balance in the Closed Commission Year/Contingency Account. Any member who has withdrawn from the Commission shall receive its remaining share of the Closed Commission Year/Contingency Account six years after the date of its withdrawal. 19.) RUN-IN or RUN-OUT LIABILITY The Commission covers the run-out liability of all members - i.e., liability for claims incurred but not reported by a former Commission member during the period it was a member. Upon approval by the Commissioners, the Commission may also cover the run-in liability of a prospective member (i.e., the liability for claims incurred but not reported by a prospective member in connection with the provision of health benefits during the period prior to joining the Commission). When the Commission covers run-in liability, the prospective member shall be assessed the expected ultimate cost of run-in claims, as certified by the Commission s actuary and approved by the Commissioners. 40

42 20.) CLAIM AUDIT The Commission retains a claim auditor experienced in auditing self-insured health plans. The audit will be conducted every three years. 21.) AUTHORITY OF CLAIM APPEAL COMMITTEE AND INDEPENDENT REVIEW ORGANIZATIONS The Third Party Administrator (TPA) shall initially review all appeals and shall prepare a memo summarizing the relevant facts and issues involved in the appeal. The TPA shall provide the Benefits Program Manager and the Commission Attorney with a copy of the memo, which has been prepared concerning the appeal. The TPA, Benefits Program Manager and Commission Attorney shall confer concerning the merits of an appeal and they shall render a decision concerning the appeal provided that the appeal is (a) In an amount not greater than $5, and/or (b) Has been reviewed and recommended for approval by an independent, third party medical review consultant.. If the decision of the TPA, Benefits Program Manager and Commission Attorney is to pay the claim, then the TPA is hereby authorized to issue the necessary check in payment of the claim. The Commission shall formally confirm the decision of the TPA, Benefits Program Manager and Commission Attorney to pay the claim and ratify the payment issued pursuant to that decision at the next meeting of the Commission. If the decision of the TPA, Benefits Program Manager and Commission Attorney is to deny the claim, the appeal shall be subject to the adverse benefit determination appeal process that is required pursuant to applicable law. The plan participant (hereinafter sometimes referred to as claimant ) shall at that time be advised that the adverse benefit determination may be appealed to the Commission's Independent Review Organization ( IRO ). The claimant's identity shall be revealed only upon the written request of the claimant. A copy of such written request with respect to disclosure of the claimant's name shall be sent to the Benefits Program Manager. a. An appeal of an adverse benefit determination must be filed by the claimant within four (4) months from the date of receipt of the notice of the adverse benefit determination. The claimant shall submit a written request to the Benefits Program Manager to appeal an adverse benefit determination and/or final internal adverse benefit determination made by the TPA and the written request shall be accompanied by a copy of the determination letter issued by the TPA. 41

43 1. The Benefits Program Manager will conduct a preliminary review within five (5) business days of the receipt of the request for an external review. There is no right to an external review by the IRO if (i) the claimant is or was not eligible for coverage at the time in question or (ii) the adverse benefit determination or final internal adverse benefit determination is based upon the failure of the claimant or covered person to met requirements for eligibility under the Plan or (iii) the claimant is not eligible due to the benefit/coverage being an excluded benefit or not included as a covered benefit. The Benefits Program Manager shall notify the claimant if (a) the request is not eligible for external review; (b) that additional information is needed to make the request complete and what is needed to complete the request; or (c) the request is complete and is being forwarded to the IRO. 2. The Benefits Program Manager shall then forward an eligible, complete request for external review to the IRO designated by the Commission who shall be required to conduct its review in an impartial, independent and unbiased manner and in accordance with applicable law. 3. The assigned IRO will provide timely written notice to the claimant of the receipt and acceptance for external review of the claimant s request and shall include a statement that the claimant may submit, in writing and within ten (10) business days of the receipt of the notice, additional information which shall be considered by the IRO when conducting the external review. Upon receipt of any information submitted by the claimant, the IRO, within one (1) business day, shall forward the information to the Benefits Program Manager who may reconsider the adverse benefit determination or final internal adverse benefit determination and, as a result of such reconsideration, modify the adverse benefit determination or final internal adverse benefit determination. The Benefits Program Manager shall provide prompt written notice of any such modification to the claimant and the IRO. 4. The Benefits Program Manager, within five (5) business days of the assignment of the IRO, shall deliver to the IRO any documents and information considered in making the adverse benefit determination or the final internal adverse benefit determination. The IRO may terminate the external review and decide to reverse the adverse benefit determination or final internal adverse benefit determination if the Benefits Program Manager does not provide such information in a timely manner. In such event, the IRO shall notify the claimant and the Benefits Program Manager of the decision within one (1) business day. 5. The IRO shall complete the external review and provide written notice of its final external review decision within forty-five (45) days of the receipt of the request for the external review. In the case of a request for expedited external review of an adverse benefit determination or final internal adverse benefit determination where delay would seriously jeopardize the life or health of the claimant or the ability to regain maximum function, the IRO shall provide notice of the final external review decision as expeditiously as possible but in no event more than 72 hours after the receipt of the 42

44 request for an expedited external review. If the notice is not in writing, the IRO must provide written confirmation of the decision to the claimant and the Benefits Program Manager within 48 hours after providing that notice in the case of an expedited external review. The IRO shall deliver notice of its final external review decision to both the claimant and the Benefits Program Manager for all external reviews conducted. The notice of decision shall contain: (i) a general description of reason for the external review with sufficient information to identify the claim, claim amount, diagnosis and treatment codes and reason for previous denial; (ii) the date the IRO was assigned and date of the IRO s decision; (iii) reference to the documentation/information considered; (iv) a discussion of the rationale for the IRO s decision and any evidence-based standards relied upon in making the decision; (v) a statement that the decision is binding on the claimant and the Commission subject to the claimant s right to seek judicial review of the same; and (vi) that the claimant may contract the New Jersey health insurance consumer assistance office at NJ Department of Banking and Insurance, 20 West State Street, PO Box 329, Trenton, NJ 08625, phone (800) or (888) (appeals) website: ombudsman@dobi.state.nj.us/ ADOPTED: KENDALL J. COLLINS, CHAIRMAN ATTEST: 43

45 BURLINGTON COUNTY INSURANCE COMMISSION BILLS LIST Resolution No JANUARY 2018 WHEREAS, the Treasurer has certified that funding is available to pay the following bills: BE IT RESOLVED that the Burlington 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 PERMA RISK MANAGEMENT SERVICES POSTAGE FEE 11/ CRAIG, ANNIN & BAXTER, LLP ATTORNEY FEE 12/ BURLINGTON COUNTY TIMES ACCT: /13/17 - BUDGET BURLINGTON COUNTY TIMES ACCT: /01/17 - RFQ TOTAL PAYMENTS FY FUND YEAR 2018 CheckNumber VendorName Comment InvoiceAmount PERMA RISK MANAGEMENT SERVICES EXECUTIVE DIRECTOR FEE 01/ , , THE ACTUARIAL ADVANTAGE ACTUARIAL SERVICES FEE 01/ TOTAL PAYMENTS FY , TOTAL PAYMENTS ALL FUND YEARS $ 16, Chairperson Attest: Dated: I hereby certify the availability of sufficient unencumbered funds in the proper accounts to fully pay the above claims. Treasurer 44

46 BURLINGTON COUNTY INSURANCE COMMISSION HEALTH INSURANCE FUND BILLS LIST Resolution No JANUARY 2018 WHEREAS, the Treasurer has certified that funding is available to pay the following bills. BE IT RESOLVED that the Burlington County Insurance Commission Health Insurance Fund s 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 O.C.A. BENEFIT SERVICES COBRA FEE 11/ O.C.A. BENEFIT SERVICES COBRA FEE 11/ O.C.A. BENEFIT SERVICES COBRA FEE 11/ TOTAL PAYMENTS FY FUND YEAR 2018 CheckNumber VendorName Comment InvoiceAmount AETNA HEALTH MANAGEMENT LLC ACCT: AE / , , AMERIHEATH ADMINISTRATORS TPA FEE 01/ , , PERMA RISK MANAGEMENT SERVICES EXECUTIVE DIRECTOR FEE 01/ , , AJM INSURANCE STOP LOSS COMMISSION - 01/ , AJM INSURANCE PROGRAM MANAGER FEE 01/ , , INNOVATIVE RISK SOLUTIONS, INC STOP LOSS COMMISSION - 01/ , INNOVATIVE RISK SOLUTIONS, INC PROGRAM MANAGER FEE 01/ , , WESTPORT INSURANCE CORPORATION SPECIFIC REINSURANCE - 01/ , WESTPORT INSURANCE CORPORATION AGGREGATE REINSURANCE - 01/2018 5, WESTPORT INSURANCE CORPORATION OVERPAYMENT , TOTAL PAYMENTS FY , TOTAL PAYMENTS ALL FUND YEARS $ 492,

47 Chairperson Attest: Dated: I hereby certify the availability of sufficient unencumbered funds in the proper accounts to fully pay the above claims. Treasurer 46

48 BURLINGTO N CO UNTY INSURANCE CO MMISSIO N SUMMARY O F CASH TRANSACTIO NS - ALL FUND YEARS CO MBINED Current Fund Year: 2017 Month Ending: O ctober Property Liability Auto Worker's Comp NJ CEL Admin TO TAL OPEN BALANCE (4,616.57) (817,271.62) (117,556.14) 4,302, (423,690.44) 198, ,138, RECEIPTS Assessments 19, , , , , , ,098, Refunds Invest Pymnts , , Invest Adj Subtotal Invest , , Other * TOTAL 19, , , , , , ,101, EXPENSES Claims Transfers , , , , Expenses , , Other * TOTAL , , , , , END BALANCE 14, (737,430.29) (97,017.67) 4,619, , , ,054,

49 SUMMARY O F CASH AND INVESTMENT INSTRUMENTS BURLINGTO N CO UNTY INSURANCE CO MMISSIO N ALL FUND YEARS CO MBINED CURRENT MO NTH O ctober CURRENT FUND YEAR 2017 Description: Ins Comm General A/C -Investors ASO Claims- WC & Liab Ins Comm General A/C ID Number: Maturity (Yrs) Purchase Yield: TO TAL for All Accts & instruments O pening Cash & Investment Balance $3,138, ,073, O pening Interest Accrual Balance $ Interest Accrued and/or Interest Cost $0.00 $0.00 $0.00 $ Interest Accrued - discounted Instr.s $0.00 $0.00 $0.00 $ (Amortization and/or Interest Cost) $0.00 $0.00 $0.00 $ Accretion $0.00 $0.00 $0.00 $ Interest Paid - Cash Instr.s $3, $3, $0.00 $ Interest Paid - Term Instr.s $0.00 $0.00 $0.00 $ Realized Gain (Loss) $0.00 $0.00 $0.00 $ Net Investment Income $3, $3, $0.00 $ Deposits - Purchases $1,256, $1,098, $158, $ (Withdrawals - Sales) -$343, $185, $158, $0.00 Ending Cash & Investment Balance $4,054, $3,989, $64, $0.00 Ending Interest Accrual Balance $0.00 $0.00 $0.00 $0.00 Plus Outstanding Checks $93, $86, $7, $0.00 (Less Deposits in Transit) -$85, $0.00 -$85, $0.00 Balance per Bank $4,062, $4,075, $12, $

50 BURLINGTON COUNTY INSURANCE COMMISSION SAFETY DIRECTOR S REPORT TO: FROM: Fund Commissioners J.A. Montgomery Risk Control, Safety Director DATE: December 26, 2017 Glenn Prince, Associate Public Sector Director gprince@jamontgomery.com Office: Cell: BCIC SERVICE TEAM Natalie Dougherty, Executive Assistant ndougherty@jamontgomery.com Office: November - December 2017 RISK CONTROL ACTIVITIES MEETINGS ATTENDED / LOSS CONTROL VISITS CONDUCTED November 29: Attended the BCIC Bridge Commission safety committee meeting. December 7: Attended the BCIC Meeting in Mount Holly. December 14: Attended the BCIC Safety Committee Meeting in Mount Holly. UPCOMING MEETINGS / LOSS CONTROL VISITS PLANNED January 4: Plan to attend the BCIC Meeting in Mount Holly BCIC CEL MEDIA LIBRARY USAGE: No videos have been utilized. SAFETY DIRECTOR BULLETINS Disposal of Improperly Discarded Syringes December 1. 49

51 50

52 RESOLUTION NO BURLINGTON COUNTY INSURANCE COMMISSION RESOLUTION FOR CLOSED SESSION WHEREAS, Section 8 of the Open Public Meetings Act, Chapter 231, P.L permits the exclusion of the public from a meeting in certain circumstances; and WHEREAS, this public body is of the opinion that such circumstances presently exist; now, therefore, BE IT RESOLVED by the Burlington County Insurance Commission, County of Burlington, State of New Jersey, as follows: 1. The public shall be excluded from discussion of the hereinafter-specified subject matter. 2. The general nature of the subject matter to be discussed: CONTRACTS: LITIGATION: PERSONNEL: 3. It is anticipated at this time that the above subject matter will be made public when the members of the Burlington County Insurance Commission have made final determination. 4. This resolution shall take effect immediately. ADOPTED by THE BURLINGTON COUNTY INSURANCE COMMISSION at a properly noticed meeting held on January 04, ADOPTED: BY: KENDALL J. COLLINS, CHAIRMAN ATTEST: 51

53 APPENDIX I 52

54 BURLINGTON COUNTY INSURANCE COMMISSION OPEN MINUTES MEETING December 7, 2017 County Administration Building 49 Rancocas Road Mt Holly, NJ :00 PM Meeting was called to order by the Chairman Collins. Ms. Dodd read the Open Public Meetings notice into record. ROLL CALL OF COMMISSIONERS: Kendall J. Collins Eve A. Cullinan Damon Burke FUND PROFESSIONALS PRESENT: Executive Director Claims Services Present Present Present PERMA Risk Management Services Joseph Hrubash PMA Management Corp. Christina Grabowski Chad Glenn Conner Strong & Buckelew Michelle Leighton Attorney Treasurer Underwriting Manager Safety Director Employee Benefits CraigAnninBaxter Law Robert Baxter, Esq. Edward Troy Conner Strong & Buckelew J.A. Montgomery Risk Control JoAnne Hall PERMA Risk Management Services Paul Laracy AJM Insurance Management Greg D Orazio Innovative Risk Solutions, Inc. Rob Henry Billie Jo Levengood 1 December 7, 2017 Burlington County Insurance Commission OPEN Minutes

55 Risk Manager ALSO PRESENT: Cathy Dodd, PERMA Risk Management Services EJA Capacity InsuranceAgency Steve Walsh APPROVAL OF MINUTES: OPEN & CLOSED MINUTES OF NOVEMBER 2, 2017 MOTION TO APPROVE THE OPEN & CLOSED MINUTES OF NOVEMBER 2, 2017 Moved: Second: Vote: Chairman Collins Commissioner Burke 2 Ayes, 1 Abstained CORRESPONDENCE: NONE COMMITTEE REPORTS: SAFETY COMMITTEE: Ms. Hall advised she was reporting on behalf of Mr. Prince. Ms. Hall reported the Safety Committee last met on September 21 st and reviewed the most commonly cited PEOSH citations and the list was distributed. Also at the meeting they discussed the 2018 training requests. Ms. Hall advised that concluded her report unless there were any questions. CLAIMS COMMITTEE: Ms. Leighton reported the Claims Committee met on November 21, 2017 and the claims would be discussed during closed session. Ms. Leighton noted the 2018 Claims Committee Meeting Schedule was included in the agenda. EXECUTIVE DIRECTOR REPORT: Executive Director advised a copy of his report was included in the agenda and he had two action items PROPERTY AND CASUALTY INTRODUCTION BUDGET: Executive Director referred to a copy of the 2018 BCIC Property & Casualty Budget which was included in the agenda. Executive Director advised lines 1 through 4 of the budget represented the loss funds which were projected by the Actuary. Executive Director reported the Actuary did make an adjustment to the loss funds in an effort to reduce the current deficit. Executive Director noted there was an increase on line 9, the CEL JIF premium. Executive Director explained as he had mentioned last month, the property carrier, Zurich, wanted to increase the property deductible. Executive Director advised after negotiations, the deductible was not changed however, the Zurich premium was increased. Executive Director reported lines represented the expenses for the Commission and were increased by 2%. Executive Director pointed out the RFP s were due on December 18 th and the results of the RFP s would determine the final expense figures. Executive Director reported line 26, Misc. Expense & Contingency line was increased to reflect the cost for the esafety Course Training Program which was discussed a few months ago. Lastly, Executive Director reviewed the Ancillary Coverages and referred to line 35 of the budget and indicated the premium for the excess liability coverage was 2 December 7, 2017 Burlington County Insurance Commission OPEN Minutes

56 increased by 10% as the coverage was being replaced since the carrier was no longer in the public entity business. Executive Director noted there were no premiums for POL/EPL or XS POL/EPL as the coverage was through the BRIT program and was reflected in the CEL JIF premium. In response to Mr. Troy s inquiry regarding the medical malpractice insurance, Mr. Burke advised there was coverage for the medical examiner. Mr. Burke indicated there were 4 physicians scheduled on the policy. In response to Ms. Cullinan inquiry regarding the increase in the property loss funds, Executive Director reiterated the loss funds were increased due to the losses and help reduce the current deficit. Executive Director noted he had discussed the sizeable increase in the loss funds with the Treasurer and advised the loss funding would be re-evaluated on a yearly basis and if needed adjustments could be made. MOTION TO INTRODUCE THE 2018 PROPERTY AND CASUALTY BUDGET IN THE AMOUNT OF $4,816,755 AND SCHEDULE A PUBLIC HEARING ON JANUARY 4, 2018 AT THE COUNTY ADMINISTRATION BUILDING, FREEHOLDER CONFERENCE ROOM 1, FIRST FLOOR, 49 RANCOCAS ROAD, MT. HOLLY, NJ Moved: Second: Vote: Chairman Collins Commissioner Cullinan 3 Ayes, 0 Nayes CERTIFICATE OF INSURANCE ISSUANCE REPORT: Executive Director reported on the Certificate of Insurance report for the month of October. Executive Director advised there were six certificate of insurances issued during the month of October. Mr. Burke advised he had reviewed the report and did not have any questions. MOTION TO APPROVE THE CERTIFICATE OF INSURANCE REPORT Moved: Second: Vote: Chairman Collins Commissioner Burke 3 Ayes, 0 Nayes NJ EXCESS COUNTIES INSURANCE FUND (CELJIF): Executive Director reported the CELJIF met on November 16, 2017 and adopted the 2018 Budget. Executive Director advised a written summary of the meeting would appear in the next agenda. Executive Director noted the CELJIF was scheduled to meet again on February 22, BCIC PROPERTY & CASUALTY FINANCIAL FAST TRACK: Executive Director reported the September Financial Fast Track was included in the agenda. Executive Director noted there was a surplus gain of approximately $50,000 in September and there was a deficit of $807,804. NJCE PROPERTY & CASUALTY FINANCIAL FAST TRACK: Executive Director reported the September Financial Fast Track for the NJCE was included in the agenda. As of September 30, 3 December 7, 2017 Burlington County Insurance Commission OPEN Minutes

57 2017 the NJCE had a surplus of $8,743,341. Executive Director noted the total cash amount was $24,194,197. Executive Director noted the NJCE distributed a dividend for the 2010 and 2011 Fund Years to the participating members, Camden, Gloucester and Union. Executive Director asked if anyone had any questions on the Financial Fast Tracks. CLAIMS TRACKING REPORTS: Executive Director reported the agenda included two claim monitoring reports as of October 31, Executive Director advised he reviewed the Claims Activity Report and did not see any anomalies. Executive Director referred to the Expected Loss Ratio Analysis report and indicated the 2017 Fund Year was showing some improvement, however the earlier years were performing higher than the Actuary projected except for the 2012 Fund Year which was the best year PROFESSIONAL CONTRACTS: Executive Director reported the Professional Contracts expired on 12/31/17. The RFQ s were issued and the responses were due on December 18, 2017 at 3:00 PM. Executive Director advised the Fund Office would set up a meeting for the evaluation committee and recommendations would be made at the January meeting MEETING SCHEDULE: Executive Director referred to a copy of the proposed 2018 Meeting Schedule which was included in the agenda. Executive Director advised there were no meetings scheduled for March, July and September, however meetings could be scheduled if necessary. Executive Director reported the 2018 BCIC Reorganization meeting was scheduled for January 4 th and if the dates were acceptable a resolution would be prepared with the Reorganizational Resolutions in January. In response to Chairman Collins inquiry Ms. Dodd advised she would include a resolution for the meeting schedule with the Reorganization Resolutions in January. Executive Director's Report Made Part of Minutes HEALTH BENEFITS REPORT: FINANCIAL PROCEDURES Financial Fast Track Mr. Laracy reviewed the October Financial Fast Track which was included in the agenda. Mr. Laracy advised there was a large surplus and the year to date change was $1,334,950. Mr. Laracy advised there were two action items for the Health Benefits. STOP LOSS POLICY Mr. D Orazio advised he was looking for authority to bind the Stop Loss Coverage. Mr. D Orazio recommended the Commissioners accept the renewal offer from the current Stop Loss carrier, Westport. Mr. D Orazio also recommended that the stop loss deductible be increased to $300,000 as there was an increased spread of risk due to the membership growth of the BCIC with the entrance of BCIT and the potential growth with the expected entrance of Rowan College at Burlington County in Mr. D Orazio advised the change would keep the cost of insurance within the budget while maintaining adequate coverage for the fund. 4 December 7, 2017 Burlington County Insurance Commission OPEN Minutes

58 PRESCRIPTION BENEFIT MANAGER REQUEST FOR PROPOSAL Ms. Levengood reported the Commission s contract with Express Scripts through the New Jersey Hospital Association expired as of December 31, Ms. Levengood advised in advance of the expiration Request for Proposals was issued to provide a three year self-insured contract with an 18-month market check. Carriers were to reprice the most recent eight months of claim data using their proposed pricing. Ms. Levengood reported nine proposals were submitted and one was eliminated as they did not provide a self-insured proposal as outline in the RFP. Ms. Levengood advised based on the annualized repriced claims, proposed contract pricing and rebate expectation they were recommending the proposal submitted by Unicum RX Coalition with Express Scripts, Inc. for the Commission effective January 1, 2018 through December 31, Ms. Levengood stated by using PERMA s suggested 10% claims trend, the new Unicum RX/Express Scripts, Inc. contract was expected to result in a savings of $3,153,587 over the expiring contract. The second and third year contract savings were expected to exceed $3.3 million and $3.6 million respectively. Ms. Levengood reported there would be no transition issues to the Commission s members and families by changing to Unicum RX/Express Scripts. Members would continue to use their current Express Scripts Inc. identification cards after the effective date of January 1, 2018 and mail order prescriptions would not need to be re-issued. Ms. Levengood advised there would be a new contract between Unicum Rx/Express Scripts and the Commission. Ms. Levengood noted that Unicum Rx Coalition is facilitated by Conner Strong and Buckelew which is also the owner of PERMA Risk Management Services and indicated neither Conner Strong nor Buckelew nor PERMA would earn any fees on the arrangement. MOTION TO APPROVE 12-MONTH POLICY FOR HEALTH BENEFIT STOP LOSS COVERAGE THROUGH WESTPORT AT A SPECIFIC ATTACHMENT POINT OF $300,000 Moved: Second: Vote: Chairman Collins Commissioner Cullinan 3 Ayes, 0 Nayes MOTION TO APRROVE EXPRESS SCRIPTS, INC. WITH UNICUM RX COALITION AS THE BCIC PBM EFFECTIVE JANUARY 1, 2018 THROUGH DECEMBER 31, 2020 Moved: Chairman Collins Second: Commissioner Cullinan Vote: 3 Ayes, 0 Nayes SELF INSURED DENTAL PROGRAM Mr. Henry advised the three main carriers were contacted, Horizon, Delta Dental and Aetna. Horizon was not interested in a coalition, however Delta Dental and Aetna did provide proposals. Mr. Henry reported Aetna was the most competitive and financials were provided to PERMA, however the underwriter and actuary came back with reserves that were in excess of the fully insured contracts that were negotiated separately 5 December 7, 2017 Burlington County Insurance Commission OPEN Minutes

59 so this year it does not make sense to bring everyone together. In response to Chairman Collins inquiry Mr. Henry advised this item would be revisited next year. In response to Ms. Cullinan s inquiry, Mr. Laracy advised the Bridge Commission Payment Structure noted in the report was informational and was already included in the budget. TREASURER REPORT: Mr. Troy advised he reviewed the Bill Lists and recommended their payment. MOTION TO APPROVE RESOLUTION DECEMBER BILL LIST, RESOLUTION DECEMBER HEALTH BILL LIST Moved: Second: Vote: Chairman Collins Commissioner Burke 3 Ayes, 0 Nayes Executive Director advised the Treasurer s monthly reports were included in the agenda. ATTORNEY: Mr. Baxter advised he worked with the Executive Director and Ms. Dodd on issuing the RFP s and he would set up a date with the Chairman to review the responses. CLAIMS SERVICE. Ms. Grabowski introduced Chad Glenn who joined PMA as a liability supervisor a few months ago. Ms. Grabowski referred to the WC Claims by Quarter Report valued as of 11/1/17. Ms. Grabowski advised there were 129 worker compensation claims reported for the County with an annual projection of 155 compared to 166 for 2016, 11 for the Board of Social Services with an annual projection of 13 compared to 5 for 2016 and 8 for the Bridge Commission with an annual projection 10 compared to 13 for Ms. Grabowski referred to the Year to Date Containment Savings Report which was included in the agenda for the period of 1/1/17 to 11/1/17 and advised PMA billed charges were in the amount of $1,322,402. Ms. Grabowski indicated the total net savings was $548,416. Ms. Grabowski noted the network penetration was 97% which was very strong. Ms. Grabowski also reviewed the Accident Cause Group Report and WC Claims Frequency and Severity by Location, Top 5 Locations by Claim Frequency and Top 5 Cause Group by Claims Frequency reports which were included in the agenda. Ms. Grabowski reviewed the results of the reports which were included in the agenda. Ms. Grabowski advised that concluded her report unless anyone had any questions. CEL SAFETY DIRECTOR: Ms. Hall advised the CEL Safety Director Report was included in the agenda and reviewed the Risk Control Activities for November December. Ms. Hall advised the Safety Committee would meet in March, June, September and December of Ms. Hall advised that concluded her report unless anyone had any questions. OLD BUSINESS: None NEW BUSINESS: Ms. Cullinan thanked the Commission for paying for the Sexual Harassment, Ethics and Diversity Training Programs for Ms. Cullinan advised the Board of Social Services contacted her inquiring about the same training programs. In response to Ms. Cullinan s comment about the BRIT training, Mr. Burke advised the Board of Social Services did have access 6 December 7, 2017 Burlington County Insurance Commission OPEN Minutes

60 to the BRIT training and he had told Ms. LeCates to review the program to see if it fit their needs, however it was only sexual harassment. Executive Director advised if it did not work out, the Commission could revisit the esafety program. PUBLIC COMMENT: MOTION TO OPEN MEETING TO THE PUBLIC Moved: Second: Vote: Chairman Collins Commissioner Burke 3 Ayes, 0 Nayes Seeing no members of the public wishing to speak, Chairman Collins asked for a motion to close the public comment portion of the meeting. MOTION TO CLOSE MEETING TO THE PUBLIC Moved: Second: Vote: Chairman Collins Commissioner Burke 3 Ayes, 0 Nayes CLOSED SESSION: Chairman Collins read Resolution 50-17, 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 Moved: Second: Vote: Chairman Collins. Commissioner Burke 3 Ayes, 0 Nayes MOTION TO APPROVE THE PARS PRESENTED DURING CLOSED SESSION Moved: Second: Vote: Chairman Collins Commissioner Burke 3 Ayes, 0 Nayes MOTION TO ADJOURN: Moved: Second: Vote: Commissioner Cullinan Commissioner Burke 3 Ayes, 0 Nayes Chairman Collins advised the next Commission meeting was scheduled for January 4, 2018 at 2:00 PM. 7 December 7, 2017 Burlington County Insurance Commission OPEN Minutes

61 MEETING ADJOURNED: 3:30 PM Minutes prepared by: Cathy Dodd, Assisting Secretary 8 December 7, 2017 Burlington County Insurance Commission OPEN Minutes

62 APPENDIX II 2018 RISK MANAGEMENT PLAN 1

63 RESOLUTION NO Burlington County Insurance Commission (hereinafter the "Insurance Commission") BE IT RESOLVED by the Insurance Commission s governing body that effective 1/1/18 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 Employed Lawyers Liability NOT PURCHASED 1

64 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 Brit $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 and $5,000,000 excess of $16,000,000 from Argonaut. b.) General Liability limits. The Insurance Commission covers $250,000 per occurrence. 2

65 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 aggregate limit per member insurance commission. The $5,000,000 excess $15,000,000 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 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. 3

66 The Underwriters at Lloyds policy also provides for BCIC coverage for public officials and employment liability but at a per member entity retention of $500,000. Note: BCBoSS purchases a separate buy down policy at a limit of $500,000 per claim and annual aggregate of $1,000,000 outside of the Insurance Commission. 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) per Addendum I of this Plan. The Insurance Commission covers $15,000/$30,000/$5,000 for Underinsured/Uninsured Motorists Liability per Addendum II of this Plan. 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 Lloyds limits of $10,000,000 per occurrence and a $20,000,000 aggregate excess over and above $500,000. NJC also purchases from National Casualty Company limits of $10,000,000 per occurrence and a $10,000,000 annual aggregate (1/1/17-1/1/18) excess over and above the $10,000,000/$20,000,000 with Underwriters at Lloyds. The NJC does not provide excess PIP 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 and 4

67 Argonaut are per member Commission and are shared limits amongst BCIC member entities. d.) Public Officials Liability/School Board Legal/Employment Practices Liability The NJC via the commercial market offers a public officials liability /school board legal liability/employment practices liability program that BCIC does not participate in. As noted above BCIC has this coverage as part of the excess liability program with Underwriters at Lloyds. Effective 4/5/12 deductible buy back coverage was secured for the Board of Social Services with National Union Fire Insurance Company of Pittsburgh, PA at limits of $500,000 per claim and $1,000,000 annual aggregate and deductibles of $50,000 each wrongful act other than employment practices violations and $50,000 each employment practices violations. e.) Property/Equipment Breakdown Property Limits/Sub-limits The Insurance Commission covers $100,000 per occurrence less applicable member entity per occurrence deductibles. 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%) on a 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: 5

68 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%) excess underlying $110,000,000 C. $260,000,000 per Occurrence Total Program Limit Property Sub-Limits: Earthquake - $100,000,000 (Annual Aggregate) + Excess Earthquake - $100,000,000 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 but not to exceed a $5,000,000 limit. Debris Removal -$25,000,000 6

69 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 perils of Earthquake, Flood or named Storm. EDP Equipment Subject to a 24 hour qualifying period. No sub-limit for equipment. $1,000,000 sublimit for data and software 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 (20%)/AXIS Surplus (30%)/United Specialty (20%)/Endurance American Specialty(10%)/Interstate Fire & Casualty (10%)/RSUI Indemnity (10%) 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 7

70 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). Burlington County - $5,000 Property, $500 Auto Physical Damage Comprehensive and $1,000 Auto Physical Damage Collision Burlington County Board of Social Services - $5,000 Property, $500 Auto Physical Damage Comprehensive and $1,000 Auto Physical Damage Collision Burlington County Bridge Commission - $25,000 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. The Earthquake Member Insurance Commission retention is $100,000 per occurrence less the per occurrence 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 8

71 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 an underlying member insurance commission such as exist in Burlington, the Burlington 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 Burlington 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 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 Special Flood Hazard Area (SFHA) the SFHA deductible above applies. Special Flood Hazard Area (SFHA) - Is an area defined by FEMA or any foreign equivalent that will be inundated by the flood event having a 1-percent chance of being equaled or exceeded in any given year. The 1-percent annual chance flood is also referred to by FEMA as the base flood or 100-year EDGE-100-B (12/10) flood. SFHA s per FEMA include but are not limited to Zone A, Zone AO, Zone AH, Zones A1-A30, Zone AE, Zone A99, Zone AR, Zone AR/AE, Zone AR/AO, Zone AR/A1-A30, Zone AR/A, Zone V, Zone VE, and Zones V1-V30. If not defined by FEMA or any foreign equivalent, it is an area that will be inundated by the flood event having a 1-percent chance of being equaled or exceeded in any given year. 9

72 Underground Piping $100,000 per occurrence less the member entity deductibles as stated above. There is no coverage for perils of earthquake, Flood or named Storm Golf Carts - $25,000 NJC does not retain any risk as it is fully insured in the commercial market. f.) 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: Burlington County (including BOSS) $1,000,000 Burlington County Bridge Commission - $1,000,000 Deductible per occurrence: Burlington County (including BOSS) $10,000 Burlington County Bridge Commission - $10,000 NJC does not retain any risk as it is fully insured in the commercial market. g.) 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: $10,000,000 per claim and $25,000,000 annual aggregate Member Entity Deductible: $25,000 NJC does not retain any risk as it is fully insured in the commercial market. All policy aggregates limits are shared by the Camden County Insurance Commission, Gloucester County Insurance Commission, Union County, Burlington County Insurance Commission, Cumberland County Utilities Authority, Ocean County Mosquito Extermination Commission and Atlantic County Utilities Authority. 10

73 h.) 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 Self Insured Retentions (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, CCIC, GCIC and CuCIC Member Entity Self Insured Retention GL and PL: Burlington County $5,000 Includes Department of Health and Buttonwood Divested Operations BCIC Scheduled Physicians - $5,000 I. Hood J. Peterson R. Sharpe Nicoletta Turner-Foster NJC does not retain any risk as it is fully insured in the commercial market. i.) Employed Lawyers Professional Liability The NJC via the commercial market offers an employed lawyers professional liability program that BCIC does not participate in. j.) 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. K.) Cyber Liability Network Privacy & Security Liability 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 11

74 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 Burlington County o Burlington County Board of Social Services 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). 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 12

75 e.) Public Officials Liability/School Board Legal/Employment Practices Liability - None f.) g.) h.) i.) j.) k.) Property/APD - $100,000 per occurrence less member deductibles. Crime None Pollution Liability None Medical Professional General Liability None Employed Lawyers Liability None Cyber Liability - None 4.) The amount of unpaid claims to be established. a.) b.) 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. 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 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.) 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. 13

76 b.) c.) d.) e.) f.) 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. 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 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 14

77 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 four major excess insurers (i.e. Underwriters at Lloyds, Argonaut for excess liability; Underwriters at Lloyds and Safety National Casualty Company for workers' compensation). Every three years, the NJC's internal auditors also 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. a.) 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 15

78 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. b.) 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: $20,000 for workers compensation claims $20,000 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. Adopted by the Governing Body this 4th day of January, Burlington County Insurance Commission By: Chairperson Attest: Secretary 16

79 APPENDIX III PMA REPORTS 1

80 Burlington County Insurance Commission WC Claims by Quarter Dec-17 Valued as of BCIC - Board of Chosen Freeholders* 1st Q nd Q rd Q th Q 2017 YTD 2017 *2017 Annual Projection Total Claims Lost Time & Medical Only Claims Record Only Claims BCIC - Board of Chosen Freeholders* 1st Q nd Q rd Q th Q Results Total Claims Lost Time & Medical Only Claims Record Only Claims BCIC - Social Services* 1st Q nd Q rd Q th Q 2017 YTD 2017 *2017 Annual Projection Total Claims Lost Time & Medical Only Claims Record Only Claims BCIC - Social Services* 1st Q nd Q rd Q th Q Results Total Claims Lost Time & Medical Only Claims Record Only Claims BCIC - Bridge Commission* 1st Q nd Q rd Q th Q 2017 YTD 2017 *2017 Annual Projection Total Claims Lost Time & Medical Only Claims Record Only Claims BCIC - Bridge Commission* 1st Q nd Q rd Q th Q Results Total Claims Lost Time & Medical Only Claims Record Only Claims *Based on the date the FROI was reported to PMA **2017 Annual Projection based on current claim volume YTD PMA Management Corp. 1

81 First Quarter Total Fees: $41,210 Net Saved: $128,966 Breakdown of Fees (458 Invoices Received): Per Bill Charge: $2,856 PMA Edits (Denied Charges, etc): $0 Duplicate Charges: $0 PPO Charge: $36,384 Complex Bill Review Charge: $1,666 Pharmacy Charge: $303 PMA Management Corp. 2

82 Second Quarter Total Fees: $47,306 Net Saved: $164,394 Breakdown of Fees (488 Invoices Received): Per Bill Charge: $3,003 PMA Edits (Denied Charges, etc): $0 Duplicate Charges: $0 PPO Charge: $34,113 Complex Bill Review Charge: - $9,902 Pharmacy Charge: $288 PMA Management Corp. 3

83 Third Quarter Total Fees: $74,789 Net Saved: $209,495 Breakdown of Fees (537 Invoices Received): Per Bill Charge: $3,241 PMA Edits (Denied Charges, etc): $0 Duplicate Charges: $0 PPO Charge: $67,612 Complex Bill Review Charge: $3,786 Pharmacy Charge: $150 PMA Management Corp. 4

84 Fourth Quarter Total Fees: $31,489 Net Saved: $127,281 Breakdown of Fees (318 Invoices Received): Per Bill Charge: $1.946 PMA Edits (Denied Charges, etc): $0 Duplicate Charges: $0 PPO Charge: $23,173 Complex Bill Review Charge: $6,314 Pharmacy Charge: $56 PMA Management Corp. 5

85 Year to Date Total Fees: $194,794 Net Saved: $630,137 Breakdown of Fees (1,801 Invoices Received): Per Bill Charge: $11,046 PMA Edits (Denied Charges, etc): $0 Duplicate Charges: $0 PPO Charge: $161,282 Complex Bill Review Charge: $21,669 Pharmacy Charge: $797 PMA Management Corp. 6

86 7 PMA Management Corp.