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More than 85% of all local governments in the US participate in a risk pool for one or more of their insurance coverages. In Pennsylvania, every county is a member of one of CCAP's risk pools (PCoRP, PComp or the UC Trust) or our captive insurance companies (PELICAN and COMCARE PRO).

What does it mean to be a member of a governmental risk pool?

Counties that participate in CCAP's Unemployment Compensation, PA Counties Risk Pool (PCoRP) and PA Counties Workers' Compensation Trust (PComp) don't always realize they are purchasing insurance from a risk pool, not from a commercial insurance company. Why should they care? What difference does it make? What are the advantages and disadvantages?

Public entity or governmental risk pools have been in existence in the U.S. since the early 1970's, but really came to prominence during the "hard" insurance market of the mid 1980's. There are more than 450 pools in operation nationwide. CCAP started the UC Trust in 1981, PCoRP in 1987 and PComp in 1993. In addition, CCAP started two captive insurance companies after the turn of the millennium. Similar to risk pools, they provide mandatory insurance for nursing homes and behavioral health. These captives are PELICAN and COMCARE PRO.

Most pools were created to bring together a homogeneous group of insureds to escape the cyclical nature of the commercial insurance market. In the mid 1980's the cycle had turned so badly that counties could not get coverage (mainly for liability exposures) and some coverage were available only at exorbitant prices. Conversely, the workers' compensation insurance market in Pennsylvania turned "soft" and prices fell to almost ridiculously low levels, then reversed course and went up, and have now flattened out (although public entity rates remain expensive).

Pools have been successful at creating structure and loyal memberships, which have allowed long-term insurance arrangements and brought stability of pricing and coverage. This means that during times when insurance costs are high and coverage is tight, pools have been able to keep costs stable and continue to provide coverage. This is particularly true of CCAP's pools because they have retained significant levels of risk themselves instead of relying upon insurance companies for coverage. The UC Trust has evolved to the point where it is totally self-insured and purchases no reinsurance or excess coverage at all. PCoRP insures the first $350,000 of every liability loss and $250,000 of each property loss (above the county's deductible) and PComp insures the first $500,000 of every loss.

But, there are other differences, some philosophical in nature and others more substantive, between governmental risk pools and traditional commercial insurance:

• Members Belong & Control The Pool
• Members Own The Pool
• Pools Are Non-Profit
• Pool Membership Is Homogeneous
• A Focus on Members' Unique Needs
• Support of the Association
• Personal Claims Service
• Participation of Local Insurance Professionals
• Broader Coverages
• Membership Has Its Privileges And Its Responsibilities

Make sure you call us when you need help with something,

John Sallade

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PELICAN INSURANCE PROGRAM TO HOLD 5TH ANNUAL SUBSCRIBER'S MEETING
By Stephen A. McDermott, CPCU, CCAP Captive Programs Director

PELICAN Insurance will hold its fifth annual Subscriber's Meeting, Wednesday, April 23, 2008, at the Eden Resort in Lancaster, PA during the PACAH Spring Conference. The meeting is open to PELICAN Insurance subscribers and their producers. The meeting will begin with a buffet luncheon followed by a short business meeting. On the meeting agenda this year is the election to fill three positions on the PELICAN Subscriber's Advisory Committee (SAC) whose terms expire in 2008. The SAC is the Board of Directors responsible for the operation of PELICAN Insurance program. There is no charge to attend this meeting, but pre-registration is requested for planning purposes. The meeting notice and registration form were mailed to PELICAN members and their producers March 12th. Please complete the meeting registration form, and return it as soon as possible.

The PELICAN liability insurance program provides primary nursing home professional liability and general liability insurance on a claims-made basis. PELICAN Insurance is a Vermont domiciled Reciprocal Risk Retention Group (RRG) formed under federal law and is owned by the participating nursing facilities.

Administration, claims and loss control services are provided by CCAP. Producer and consulting services are provided by Willis POOLING and Willis Management (Vermont) Ltd. The individual facilities must choose their own insurance producer.

PELICAN membership is open to current PACAH Full Voting and Associate member non-profit nursing homes. This program is not open to for-profit facilities. PELICAN Insurance is a CCAP insurance program sponsored by PACAH which began writing business effective March 1, 2003. The PELICAN Insurance program runs from March 1 to March 1, but a home may join the program at any time.

If you would like any additional information regarding the PELICAN Insurance program, or the PELICAN Annual Subscriber's Meeting, please contact Steve McDermott, Captive Programs Director, CCAP Insurance Programs, telephone: 800-895-9039, email: smcdermott@pacounties.org.

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FOUNDATIONS OF SOUND INVESTMENT AND FINANCIAL PLANNING FOR PUBLIC FUNDS
By John Molloy, CFA, Senior Marketing Representative, Pennsylvania Local Government Investment Trust (PLGIT)

As we make our way into the second quarter of 2008, investors remain cautious and concerned over what may lie ahead. A credit squeeze, a troubled housing industry set upon by subprime mortgage defaults, rapid interest rate declines by the Federal Reserve, and their collective effect on ancillary sectors make it difficult to predict the future.

At PLGIT, we stress some fundamental principles to our clients as a solid foundation for municipal fund planning, regardless of economic conditions. Below, we encapsulate some of the key ideas shared during those presentations:

Have a thorough Investment Policy. Above everything, a county should create, or update, its statement describing the specifics of its approach to investing. Key elements should include: the policy's scope; the delegation of authority and responsibility; a statement of approved investments and institutions; a statement of accounting and reporting requirements and other specific parameters of its investing.

Keep detailed and current reporting on investments. Investment records should be clear and constantly updated to provide an accurate snapshot of the big picture at any time. Records should include: a listing of investments/funds; cost, yield, accrued interest and maturity of investments; a comparison of current income with income projections; a listing of the market value of each investment and other measurements.

Seek to manage risk. While all investing involves some degree of risk, it is possible to diversify in such a way as to reduce and manage the risk: match assets and liabilities and acquire investments with varying maturities and yields, securities with fixed and variable-rate interests and securities with an active secondary market.

Identify clear investment objectives. Know the expectations for each investment in terms of safety, accessibility of funds for expenditures (liquidity), degree of investment risk, and return on initial investment.

Ensure compliance. Counties are required to place their assets within the state's guidelines for specific investments including treasury bills and bonds, short-term government agencies including federal home loan banks, 'Freddie Mac' or 'Fannie Mae' products, appropriately collateralized deposits at financial institutions, or highly rated S.E.C.-registered mutual funds and local government investment pools such as PLGIT. Some counties can also invest in high-quality commercial paper.

Engage in cash flow forecasting. Cash flow forecasting is the process of predicting cash flows for the purposes of liquidity management and financial control. With a clear picture of your cash flow, your county will be able to balance the timing of expenditures with the investment of additional funds for longer periods of time. And that means you can take advantage of the higher interest rates typically associated with longer-term investments.

Do breakeven analyses. A break-even analysis allows investors to better manage risk and diversification. An analysis evaluates and compares different maturity options for different investment products by factoring rate of return and duration of investment.

Evaluate costs and yields. Free sometimes isn't really free. Costs can eat into a significant portion of your returns and yields can be quoted in many different ways. An evaluation that reveals a true comparison of expected results is important to making any investment decisions.

These key ideas represent a simple overview of a more detailed presentation that PLGIT has given to regional groups across the Commonwealth. If you have questions about PLGIT's Foundations For Sound Investment and Financial Planning for Public Funds, contact your PLGIT representative, or call PLGIT at 1-800-572-1472.

John Molloy is a senior marketing representative with PLGIT and has been with PFM Asset Management LLC, PLGIT's investment adviser, since 2002. He holds the Chartered Financial Analyst designation and is a member of the CFA Institute.

This information does not represent an offer to sell or a solicitation of an offer to buy or sell any fund or other security. Investors should consider the investment objectives, risks, charges and expenses before investing in any of the Trust's portfolios. This and other information about the Trust's portfolios is available in each portfolio's current Information Statement, which should be read carefully before investing. Copies of these Information Statements may be obtained by calling 1-800-572-1472 or are available on the Trust's website at www.plgit.com. While the PLGIT and PLGIT/ARM portfolios seek to maintain a stable net asset value of $1.00 per share and the PLGIT/TERM portfolio seeks to achieve a net asset value of $1.00 per share at its stated maturity, it is possible to lose money investing in the Trust. An investment in the Trust is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. Shares of the Trust's portfolios are distributed by PFM Fund Distributors, Inc., member Financial Industry Regulatory Authority (FINRA) (www.finra.org). PFM Fund Distributors, Inc. is a wholly owned subsidiary of PFM Asset Management LLC.

SMPLGIT, PLGIT-Class Shares, PLGIT/PLUS-Class Shares, PLGIT/I-Class Shares, PLGIT/TERM, PLGIT-CD and PLGIT/ARM are service marks of the Pennsylvania Local Government Investment Trust.

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HOLD ON THROUGH THE UPS AND DOWNS OF THE MARKET:
Five tips for dealing with market turmoil
Article Provided by Michelle Murphy, Retirement Specialist, Nationwide Retirement Solutions

1. A well-thought-out investment plan is a well-thought-out investment plan regardless of market conditions. Stick with it.
2. You're in the market for the long-term. Do not make investment decisions based on short-term market drops or gains.
3. Evaluate how an investment fits into your overall financial strategy, regardless of short-term market volatility.
4. Look at a market decline as a buying opportunity. Some funds may be undervalued following a broad market decline, allowing you to invest more in high-quality companies.
5. Talk with your Retirement Specialist. While information from retirement specialists is for education purposes only and not intended as investment advice, (s)he's likely to have been through volatile periods before.

If you continue your investment strategy in your employer-sponsored retirement plan when the markets are topsy-turvy - or even through a down market - you can focus on long-term goals rather than immediate concerns, maintain a consistent plan, and possibly pay less for your investments than their average price over a long period of time. The concept is known as dollar cost averaging. Dollar cost averaging does not assure a profit and does not guarantee against loss in a declining market.

Consider the impact other major crises have had on the market and, more importantly, the stock market's long-term trend. Investors who have stayed in the market during turbulent times have eventually been rewarded. Past performance does not guarantee future results.

Looking for more insights? Go to your plan's website or www.nrsforu.com where you can tour our educational resources, geared especially for public employee-participants in deferred compensation.

The NACo 457 Deferred Compensation Plan is administered by Nationwide Retirement Solutions and endorsed by CCAP. Deferred compensation is a voluntary retirement savings program that allows county employees to regularly save, on a pre-tax basis, for their futures. For further information on NACo's Deferred Compensation program, please contact Julia Jackson at (800) 895-9039. Additional information is also available online at www.pacounties.org, www.naco.org, or www.nrsforu.com.

© 2008, Nationwide Retirement Solutions, Inc. All Rights Reserved. Nationwide Retirement Solutions is a subsidiary of Nationwide Financial®, a publicly traded company [NYSE:NFS] that specializes in long-term savings and retirement products and services. Nationwide, the Nationwide framemark, Nationwide Financial, and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company.

Nationwide Retirement Specialists are Registered Representatives of Nationwide Investment Services Corporation, Member FINRA. In Michigan only, Nationwide Investment Svcs. Corporation.

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PCoRP AND PComp BOARDS COMPLETE APPOINTMENT PROCESS
By John Sallade, Managing Director, CCAP Insurance Programs

Bradford County Commissioner John Sullivan and Bedford County Commissioner Steve Howsare are the newest members of the PCoRP and PComp Boards of Directors. Both were chosen by the respective boards based on written nominations submitted by the pool members. Commissioner Sullivan fills a vacancy on the PCoRP Board for an At Large representative, as does Commissioner Howsare on the PComp Board. Both will serve the remainder of an unexpired term, and are eligible for reelection to their boards for 2009.

Our thanks to both commissioners for their willingness to serve!

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THIS MONTH'S INSURANCE TRAINING OPPORTUNITIES
By Linda Rosito, Insurance Training Director

There are 8 training opportunities available to you during the month of April. Register to join us for one or all of the following workshops. Some of these workshops are held at multiple locations on a variety of dates. Each workshop listed below is linked to our website where you'll find full program information and online registration.

April 3 Defensive Driving Course, Lewisburg
April 8 KEYS: The Secret to High Performance Employees, Harrisburg
April 10 PCoRP Los Control Workshop, State College
April 15 HR Law Boot Camp (Basic), Harrisburg
April 17 Defensive Driving Course, State College
April 17 Leadership: A Few Good Men and Women!, State College
April 24 Leadership: A Few Good Men and Women!, Scranton
April 30 Leadership: A Few Good Men and Women!, Harrisburg

For information on the workshops scheduled in May, see your copy of the Glimpse or visit our training section of the CCAP website linked here and below. If you have any questions regarding training please contact Linda Rosito or Jenn Carey at 800-895-9039.

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LEADERSHIP: A FEW GOOD MEN AND WOMEN!
By Linda Rosito, Insurance Training Director

Most leadership seminars look at various leadership styles, which may or may not help you. This training program is designed to identify your leadership style, and determine whether or not it is effective. You want the truth? You can't handle the truth! Some studies suggest that 80 percent of those in leadership positions believe they are in the top ten percent of effective leaders. Together we will explore what works and what doesn't when leading public employees. Who knows, we may all take something away from this program that improves our ability to lead!

Our featured speaker for this workshop opportunity is Chuck Mazzitti, President and CFO, Mazzitti and Sullivan EAP Services. We hope you can join us at one of four locations for this workshop.

For more information on dates and locations for this workshop please refer to your copy of the Glimpse or our workshop page on our website. If you have any questions regarding this training or any others offered this spring, please contact Linda Rosito or Jenn Carey at 800-895-9039.

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DEALING WITH AGGRESSIVE DOGS
By Gary Nicholson, CHSP, Senior Loss Control Specialist

Dogs are amazing animals. They love their owners unconditionally. They protect their owners' homes and businesses. They find lost children. They fetch the newspaper. They swim. They lie by the fire. They pull sleds in the snow. They predict seizures and sniff out cancer cells. They lead the blind. They hear for the deaf. They comfort the elderly. They leap from helicopters to rescue the drowning. They roll in dead stuff. They chase the cat. They dig up the garden. They die for us in war time. They sniff out drugs and bombs. They pull wheelchairs. They race agility courses. They steal the TV remote. They warm their owners' feet and their owners' hearts.

Many county employees, as part of their job, enter onto a county resident's property. That resident could have a dog. To prevent being attacked by a dog or having a dog bite them, county employees should follow these recommended dog safety guidelines:

Entering the Property

• When possible, advise the dog owner of your visit and ask them to tie any dogs up.
• When possible, make your entrance in a vehicle. This is the way most dogs see their owners and friends arrive.
• Before walking onto the property, check for signs that a dog may live there, such as bones, a dog kennel, chewed up articles or dog droppings.
• When entering a property, rattle the gate or make a noise calling or whistling the dog etc.
• If the dog comes, greet him as a long lost friend, and if he responds to you and you are confident, enter the property.
• When a property is entered the gate should be closed, but not latched until it is known where the dog is and whether it is friendly or not.
• If there is barking but it does not get any closer after a reasonable time, we can assume the dog is tied up or behind a back fence.
• Walk in a confident manner. Dogs do not smell fear but they are very good at reading body language (jerky nervous movements etc).
• If a dog approaches you, try and understand his posture. If he is alert but not aggressive, greet him (perhaps turning to the side to present a less imposing figure) let him sniff you but don't stop, just carry on walking perhaps avoiding excessive eye contact. Remember to keep a cautious eye behind you.
• If you come across a sleeping dog, back off and try to waken him at a safe distance and begin the greeting procedure.
• Avoid walking close to the walls of the house as you may surprise a sleeping dog.
• If a dog appears to be chained up, do not assume that the chain is attached, or it may be longer than you think or even break. Remember that dogs are more aggressive when tied up.
• If a dog is hiding or lying on a doorstep give him room to escape. Beware! The fear biter.
• If the owner is present ask them to tie the dog up. Beware! The statement "it's alright he won't hurt you". All dogs will bite given the right circumstances.
• Stand well back when knocking on a door. If there is a dog inside the owner may not be quick enough to prevent the dog from biting you.
• Never assume that because a dog's tail is wagging he won't bite, it can mean indecision on the dog's part, and they seldom hurt you with that end.
• When leaving the property, be careful. This is when most attacks occur. Preferably back off and put something between you and the dog.
• Never run unless you can beat the dog to a safe haven. This is a sure way to incite an attack.

• All strange dogs must be treated with caution and a person should not approach or stroke a dog unless invited to do so by its owner.
• The dog must be approached slowly, allowing time for it to sniff the person or make friendly contact with them.
• Speaking to the dog gently, avoiding eye contact, and patting around the chest or neck region are all non-threatening actions.
• If the person is crouching, their face must be kept well clear of the dog's face.
• Approaching suddenly, bending over the dog or patting it on the head or back are dominant and threatening gestures and may cause a dog to react by biting.
• Each dog has a different social and personal distance that a stranger is permitted to enter. This is why a dog that is tied up outside a shop may snap or bite when someone tries to pat it. The dog cannot escape when there is a sudden invasion of its personal space.

A sudden movement by a person or the passing of an object towards its owner when the dog is nearby or in between can be perceived by a dog as a threat to its owner. The dog may misunderstand the context of the interaction and react by biting or lunging at the other person.

If Threatened

Many dog bites are the result of people reacting wrongly when they are approached or threatened by a dog. The initial reaction should be to stop and remain completely still. Eye contact with the dog should be avoided and it should be spoken to gently.

A command such as "sit" or "stay" can be given softly because many dogs will obey these. All threatening gestures such as yelling at the dog, waving one's arm or rushing at it should be avoided. In some circumstances these actions can scare a dog away, but other dogs may react by attacking. Unless the person has the skills, experience and the equipment to deal with this, any reaction that may accentuate the dog's aggression is not advisable. Erratic nervous movements or screaming will also cause the dog to advance further. Crouching to reduce one's body size may relax some dogs, but any movements must be made slowly and deliberately. An article of clothing can be carefully removed and used take the first bite if the dog suddenly lunges.

If the dog relaxes the person should back away slowly. Turning and running are signals for the dog to chase and attack. Most people are bitten moving away from a dog when they turn and run. If the incident occurs outside or near the dog's home it is important for the person threatened to gradually increase the distance from where the dog lives, as dogs are usually less aggressive on neutral ground.

If Attacked

If you believe it is a full-on attack, reach down and pick up something that you can throw at the dog such as a hand full of stones, a shingle or whatever is nearby. If that fails, grab your clip board, briefcase or whatever, and offer it to the dog, keeping it well away from your body. If the dog is truly aggressive, he will grab the object and hold on. Do not let go of the object; if you do he will soon realize that it is not you and will likely attack again.

Normally, after he realizes he is having little or no effect he will stop the attack or at least give you time to plan your next move.

Only strike the dog as a last resort; when a dog is in attack mode pain can incite them more. Never try to kick the dog when he is facing you. It's reported that a dog can bite ten times before we can respond. If you are knocked to the ground remain motionless in the fetal position, and protect your face by crossing your arms above your head.

In conclusion, despite 12,000 years of living with dogs, they remain largely misunderstood by humans. When a dog, bites we interpret this in human terms. In most cases, the bite is a normal dog behavior. The dog that bites is not necessarily a mean dog or a bad dog - he is just a dog. Remember, most dogs are not aggressive but rather just curious or defending what they perceive as their territory. It is most important to be able to tell if a dog is just playing or is being truly aggressive.

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CCAP Insurance Programs
2789 Old Post Road, Harrisburg, PA 17110
Phone 800-895-9039 - FAX 717-526-1020
Claims Fax 888-692-2368
Click here to go the Insurance Section of the CCAP Website.

email:jsallade@pacounties.org

Insurance Matters is published monthly by CCAP Insurance Programs for the use of members
of CCAP's UC Trust, PCoRP, PComp, PIMCC, COMCARE, COMCARE PRO, BEST Flex,
PELICAN and other insurance programs, and insurance producers of these members.

Advice contained in this publication is not legal advice and members are encouraged
to seek the opinion of their solicitor.

Click here to send feedback, change your address or add/discontinue a subscription.

The information provided in this publication is not intended to take the place of professional advice. Readers are encouraged to consult with competent legal, financial, or other appropriate professionals. Statements of facts and opinions expressed in this publication, by authors other than Association staff and officers, are the sole responsibility of the authors and do not necessarily represent an opinion or philosophy of the officers, members and staff of the County Commissioners Association of Pennsylvania (CCAP). No endorsement of advertised products or services is implied by CCAP unless those products or services are expressly endorsed, or are owned or managed by the Association programs, or our affiliates. This publication may not be reproduced, modified, distributed, or displayed in part or in whole, by any means, without advance written permission of CCAP. Please direct your requests to John Sallade, Managing Director, CCAP Insurance Programs, jsallade@pacounties.org.

Note: As part of its copyright agreement the CCAP grants the author the right to place the final version of his/her manuscript on the author's homepage, subject to CCAP's standards, or in a public digital repository, provided there is a link to the CCAP website.

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