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Insurance Matters July 2008
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July 2008 |
Vol 12, Issue 7 | |
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Owned by Members Governed by Members Service to Members
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SPECIALTY LINES |
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Each June the PComp board, which governs CCAP's workers' compensation insurance pool, meets for a board retreat. For many years we have been meeting at Seven Springs Resort in Somerset County. We spend a day reviewing how things are going, including the evaluation results from our member survey. We look at our work goals for the year and how we are doing, and discuss various management issues. I particularly ask the PComp staff to bring any trends to the board's attention.
Each year we try to do one training topic for the board members. In the past we have had work comp judges attend and review how they view work comp hearings and proceedings. We've had presentations from our reinsurers, explanations of how experience modifications are calculated, presentations by our actuary, and more.
This year Janice Shirk, our claims manager, and I are reviewing the Rise and Fall of a PComp claim. We put together a presentation on the details of how a claim is handled well (and not well) from its very beginning in a member county to the work done by the PComp claims representative. As I write this I am hoping the board will enjoy the information when we go over it next week!
One thing I can be sure of is that they will learn something, because I thought I knew how the process worked, until Janice walked me through all the detail. There is a lot of detail. It gave me a new appreciation of the work done by our workers' compensation claims representatives, and for that matter by our property and liability claims reps too. We handle almost 2,290 claims each year, and here are the approximate number of claims per program:
PComp 1,450
PCoRP 600
PELICAN 200
COMCARE PRO 40
Total: 2,290
We do this with a claims staff of 11 people - and three are part time so it is 9.5 full time equivalents. We have 3 claims representatives dedicated to PCoRP, 3 for PComp and shared responsibility among 2 or 3 reps for PELICAN and PRO. When you look at the number of old and new claims being managed by each claims representative it really is amazing how many different claims we handle. We watch the numbers pretty closely so we do not overwhelm the claims reps as the quality of our service would suffer. And our annual evaluations from program members rate our claims service very highly.
When your employees are hurt, when the county damages the property of a constituent, when the county allegedly wrongs someone and they sue the county, we end up being the main contact with the people affected. Our claims reps do a great job of helping your injured staff, and helping fix the problems of people who believe they have had a negative experience with the county. And we also are available to come visit with you county management to review claims and the claims process to make sure everything is going well.
Make sure you call us when you need help with something,
John Sallade
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PCoRP RENEWAL COMPLETED |
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The June 1 renewal of the Pennsylvania Counties Risk Pool (PCoRP) was completed on time and with reduced costs. Forty-one of PCoRP's forty-two members renewed coverage. Cameron County decided to purchase their insurance elsewhere, a sad loss for the pool as the county was one of the 12 initial members of PCoRP in 1987.
PCoRP members who wish to leave the pool are required to give 120 days notice of their intent to leave, so we can plan for our renewal reinsurance. For this renewal, Cameron and Northampton Counties were the only two members who gave notice. Northampton County, a three year member of PCoRP, went through a formal RFP process, and elected to remain with PCoRP.
For the 2008 - 2009 policy year PCoRP has 41 member counties, and 5 county related entity members, for a total of 46 members.
If you have any questions about the PCoRP program, please contact Karen Cohen, Property and Casualty Manager at CCAP, 800-895-9039.
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BENEFITS TIME...ALREADY?? |
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By Julia Jackson, CCAP Employee Benefit Programs Manager
It is hard to believe, but it is time to start thinking about your county's 2009 benefits...already! As you start to plan, don't forget about two valuable tools available to you through CCAP and the CCAP Insurance Programs:
1. CCAP Salary & Benefits Survey
The 2008 CCAP Salary & Benefits Survey Results are now available! CCAP Members have access to a FREE Salary & Benefits Survey which includes total payroll data, salary detail by position, and union and non-union benefits information for many of Pennsylvania's 67 counties. The 2008 CCAP Salary & Benefits Survey is located in the "Members Only" section of the CCAP website, www.pacounties.org. A user name and password are required to access the data. If you do not already have a username and password, please contact me at jjackson@pacounties.org.
The CCAP Salary & Benefits Survey is FREE to CCAP county members (commissioners, council members, chief clerks, county administrators and solicitors) and select staff (human resources and other designated personnel). All others are welcome to purchase access to the reports for a fee of $250.
CCAP's Salary and Benefits Survey is compiled each year to provide our members with reliable data about how counties are compensating employees. CCAP strives to provide the most accurate and up-to-date information possible; however, there are limitations to the data. Not all counties supplied 2008 information, and of those who did, each is unique.
Click Here to Enter Salary Survey Login (A username and password are required.)
2. The CCAP BEST Flex Program
Through the CCAP BEST Flex Program, Benefits Solutions that are Flexible, your county has access to the group purchasing power of over 67,000 county employees! BEST Flex has leveraged CCAP's group purchasing power and negotiated discounts for employee benefits programs such as life insurance, dental insurance, vision insurance, long term care insurance, Section 125 Flexible Spending Accounts, and even health insurance. Counties can participate in the savings of any one or a selection of the benefit programs available.
For more information on the CCAP Salary & Benefits Survey or the BEST Flex Program, email Julia Jackson or call 800-895-9039.
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PELICAN 2007 FINANCIAL AUDIT SHOWS CONTINUED FINANCIAL STRENGTH, NEW SAC MEMBER APPOINTED |
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By John Sallade, Managing Director, CCAP Insurance Programs
The 2007 PELICAN financial audit is complete and will be sent to all PELICAN members in the next several weeks. PELICAN provides general and professional liability insurance to 31 county owned, county related, and nonprofit nursing homes in Pennsylvania. The Risk Retention Group is operated by CCAP, owned by the nursing homes it insures, and is endorsed by PACAH, the Pennsylvania Association of County Affiliated Homes.
The 2007 audit was conducted by Johnson & Lambert, and is being submitted to the Vermont Department of Insurance for their review. John Prescott, the manager for the audit, met with the PELICAN SAC, which is the governing board, on June 17. He reviewed the audit and provided the following information: Total assets at year end were $14,989,953. Liabilities were $6,201,611 leaving a Subscribers Surplus of $8,788,342. Total revenues for the year were $3,618,238 and Total Expenses were $2,335,465 leaving income before federal income taxes of $1,282,773. Taxes were $65,868 leaving Net Income for the year of $1,216,905. Other Comprehensive Income (Loss) was ($13,216) leaving Comprehensive Income for the year of $1,203,689.
Under Vermont law, members of PELICAN are called Subscribers, and the governing board is called an SAC, Subscribers Advisory Committee.
At their June 17 meeting the PELICAN SAC appointed Lynne Dillon, administrator of the Saxony Health Center, to a vacancy on the SAC. PELICAN President Mike Wilt also made appointments to the PELICAN subcommittees. Here is a listing of the SAC members and the PELICAN subcommittees:
PELICAN Subscribers Advisory Committee
Class A Members
Mike Wilt (Executive Director, PACAH), President (2008)
Joe Giles (Council Member, Erie County) (2009), Vice President
Diane Cleary (Vermont Director) (2010)
Marvin Granda (Fiscal Officer, Gracedale Nursing Home) (2009)
Molly Hess (Administrator, Philadelphia Nursing Home) (2009)
Keith Wentz (Risk Manager, York County) (2008)
James Aurand (Administrator, Susque-View Home) (2008)
Ronald King (Administrator, Jefferson Manor Health Center) (2010)
Class B Members
Lynne Dillon, Saxony Health Center (2010)
John Sallade is the SAC Secretary and Treasurer, but is not a voting member of the SAC.
Executive and Finance Subcommittee
Chairman: Joe Giles
Members: Lynne Dillon, Ron King
Claims and Loss Prevention Subcommittee
Chairman: Keith Wentz
Members: Marvin Granda, Molly Hess
Underwriting and Member Services Subcommittee
Chairman: Mike Wilt
Members: Diane Cleary, James Aurand
Investment Committee Representatives
Keith Wentz and Joe Giles
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FIX THINGS FROM THE FLOOR UP TO PREVENT SLIPS, TRIPS AND FALLS |
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By Gary Nicholson, CHSP, Senior Loss Control Specialist
To stop slips, trips and falls you must improve the flooring, the footwear, and the habits of workers. In this article I will review what to do about all 3 of these accident factors. According to federal government data slips, trips, and falls account for more than a quarter-million lost-day injuries a year, or more than 17 percent of the total nonfatal injuries.
There are many ways to cut down on this gravity-fed mayhem, and a useful way to look at them is by applying a version of the factors spelled out in traffic accident causation ... road conditions, the vehicle, and the driver.
Let's look at the first factor, the road conditions. In the case of slip, trip, and fall accidents, the "road" is of course the floor a person walka on. Floors can either help or hinder safety while walking.
The key factor is the coefficient of friction (COF), a measure of a floor's resistance to having a foot slide across it. The higher the COF, the better, with COFs of 0.5 or higher recommended for most purposes. How slippery is a floor can be determined using a portable device called a slip meter.
There's a requirement to taking that measurement. The floor must be measured when wet because COFs drop drastically when moisture is added. This supports the rationale that if a floor is slip resistant when wet it will be slip-resistant when dry.
What if the floor doesn't meet the requirements? Numerous solutions are available.
· Surface modifiers are chemicals that increase the COF by creating tread patterns or micro pores in the original surface. Some can last several years, and
should be applied by professionals.
· Mop-on treatments both clean the floor and deposit ingredients to increase its slip resistance. These can be applied by unskilled labor.
· Skid resistant products in strips and rolls. These have an adhesive backing or are applied with glue, and can be cut to fit on stair treads, ramps, or other smaller spaces.
· Hard rubber mats also are useful in reducing the hazards of wet floors.
It is important to keep flooring both level and free of cracks or other imperfections. As little as a 3/8-inch rise in a walkway can cause a person to 'stub' his toe resulting in a trip and fall as can a slight variation in stair riser height.
Also the need for proper lighting is important. Especially when people come from a brighter area, such as outdoors in daylight, the eyes take time to adjust to lower light levels making transition zones such as entryways especially hazardous.
Next let's look at the second factor the "vehicle" in slip, trip, and fall accidents the footwear. On icy, wet, and oily surfaces, the COF can be as low as 0.10 with shoes that are not slip resistant. Obviously, high heels, with minimal heel to surface contact, taps on heels, and shoes with leather or other hard soles lead to injuries. Shoes with rubber cleats, soft soles and heels provide a high COF.
If floors are slip and trip resistant, and shoes help out, that leaves one of the three causative factors yet to work with ... the "driver," or in this case, the walker. Let's now look at the "driver" or what the human element can do to prevent these incidents.
Often slip, trip, and fall prevention is a matter of simply educating people on what to do and not do. Here are some of those dos and don'ts, and an innovative program to instruct them.
· Walkways. Everyone should note that walkways are for walking, not storage of any item, and that includes tools or even temporarily opened drawers. Where applicable like in maintenance departments and utility rooms it helps if walkways are clearly marked with painted lines as to their path and width. This also lets a supervisor immediately note if any object in the space is not supposed to be there.
· Cables and cords. Cable like items stretched across the floor act just like the landing wire on an aircraft carrier, but often with crash landings! If extension cords, cables or other wiring need to cross a floor area, covers are available to create a ramp over them. At the least, tape them down, and post an elevated sign that the hazard is there.
· Wet areas. Any moisture can drastically reduce the slip resistant qualities of flooring. Spills should be promptly mopped up, and until the floor is dry, a sign should warn of wet flooring. In April (or any other month's) showers, someone needs to be assigned to place rubber mats near doors. Also, check to see that floor and outdoor drains are clear of debris so they can do their jobs.
· Dust or dirt, though dry, can also be slippery and should be swept up often.
· Stairs. Everyone should be reminded to use handrails!
· Safe walking. Even if all the above are carried out, people should still follow the old adage, "Watch your step." This is especially true if carrying a load which reduces balance and can block visibility. Slow your pace on wet surfaces, and test your grip on ramps before proceeding. Beware of distractions. Most of us can walk and chew gum at the same time, but some fail and fall when gum chewing is replaced by an excited conversation on a cell phone.
Finally, remember we all have an obligation to either fix a hazard or to report the hazard to the appropriate person.
Hopefully these suggestions will help you to minimize slips, trips and falls. For assistance or for more information email Gary Nicholson, Senior Loss Control Specialist or call 800-895-9039.
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PLGIT SEPARATE ACCOUNT MANAGEMENT (SAM) PROGRAM |
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By John Molloy, CFA, Senior Marketing Representative, Pennsylvania Local Government Investment Trust (PLGIT)
In recent years, PLGIT has identified a need to develop a product for a growing market of local governments who have designated 'reserve funds' that could be managed with a longer investment horizon. Examples of these funds include large capital reserves, windfalls from the sale of infrastructure, self-insurance funds, and funds for the preservation of open space. The result of this development is the PLGIT Separate Account Management program or SAM.
PLGIT/SAM offers a new investment option for existing PLGIT participants who are looking to commit reserve funds for a longer period of time and potentially better performance. PLGIT/SAM is designed to accommodate reserve funds in the amount of $10 million or higher, and over a timeframe of one to five years. SAM is also an attractive opportunity for entities that are not PLGIT participants, but may find the investment timeframe and potential for return an incentive to build a relationship with our Trust.
Participants in PLGIT/SAM, would choose from one of two investment strategies. A Laddered Strategy that might be suited to provide income for future cash flow needs and with a goal to maximize yields. As investments mature, proceeds would be invested in a PLGIT-class account to either be reinvested in the SAM portfolio at a later date. A second option would be a Total Return strategy, where PLGIT would work with a participant to establish a suitable benchmark based on the targeted average life of the portfolio and its permitted investments. PLGIT would manage the portfolio with the goal of outperforming the benchmark while staying close to the weighted average life target. This type of strategy is often suited for funds where the principal amount of the portfolio is expected to be maintained over time.
The yield for longer-term portfolios can be counter cyclical to short term rates, although that is not always the case Both SAM strategies provide a favorable investment option when market conditions drive down short term yields for other PLGIT investments. Educating participants in the risks and benefits of investing in an account like SAM is an integral part of PLGIT's service.
PLGIT would provide PLGIT/SAM participants with a standard set of monthly and semi-annual reports, which detail account performance against selected benchmarks, a current market outlook and update, market valuation and attributes of the portfolio including distribution by maturity and market sector.
For more information about PLGIT/SAM, 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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PUBLIC PLAYGROUND SAFETY HANDBOOK |
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By Bob Lauzonis, Loss Control Specialist
The U.S. Consumer Product Safety Commission (CPSC) has released an update (May 2008) to its Handbook for Public Playground Safety. The handbook contains guidance for childcare personnel, school officials, designers, inspectors, parents, and school groups on building safer playgrounds. The previous revision of the handbook occurred in 1997.
There were several significant technical revisions to the equipment and surfacing guidelines in the revised handbook. These include expanding the definition of play equipment, revising the critical heights' table for loose-fill material, and adding new recommendations for protective surfacing over asphalt. In addition, there were several editorial changes to make the handbook easier to understand and use.
The definition of public playground equipment in the handbook now includes play equipment for use by children as young as 6 months, in recognition of the new ASTM F2373, Standard Consumer Safety Performance Specification for Public Use Play Equipment for Children Six Months through 23 Months, published by ASTM International. Previously, the age range of playground equipment covered by the handbook was 2 through 12 years, which corresponded to the range of coverage of ASTM F1487, Standard Consumer Performance Specification for Playground Equipment for Public Use. The critical heights' table for loose-fill protective surfacing materials used under and around playground equipment was simplified. These values are used to quantify the impact attenuation property of the surface, and approximate the fall height below which a life-threatening head injury would not be expected to occur. The new table now provides critical height values for a standard 9-inch depth of various types of compressed loose-fill materials. Nine inches is now the minimum fill depth recommended by CPSC for loose fill materials. The previous edition of the table included critical height values for various depths of materials, including shallower depths than 9 inches.
The CPSC added new recommendations for installing loose fill material over hard surfaces, such as asphalt. They include a multilayer configuration of a separate drainage course underneath a geo-textile cloth, which is topped by at least 9 inches of loose fill material. In high traffic areas, impact attenuating mats should be embedded in the fill to provide additional protection. These recommendations may be used to improve the safety of older playgrounds that still exist over hard surfaces.
The new handbook may be downloaded from the CPSC Web site at http://www.cpsc.gov/cpscpub/pubs/325.pdf . Other CPSC playground safety publications may be found at http://www.cpsc.gov/cpscpub/pubs/playpubs.html .
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PCoRP CLARIFIES COVERAGE FOR EMPLOYED LAWYERS |
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By Karen Cohen, Property & Casualty Programs Manager
We receive many questions as to whether the PCoRP Policy includes legal malpractice coverage for lawyers employed by our members. Coverage has always been provided for employed/appointed attorneys doing criminal defense work for a member under the PCoRP policy. However, the policy itself was silent and did not include a description of the coverage, subsequently generating questions as to its existence. As a remedy, the 2008 Coverage Document was amended to specifically address the coverage. Under the definition of "Covered Party" a provision was added that describes the attorneys as covered parties. The definition reads that covered parties under the policy include:
"Lawyers employed or appointed by the member, including, but not limited to, district attorneys, employed or contracted lawyers, public defenders, and legal aid attorneys, all while performing within the scope of their duties for the member."
Also, under the policy's General Liability coverage provisions, an additional coverage section was added for Legal Malpractice Liability to clarify that the coverage for these attorneys is included under the General Liability coverage section of the policy. These changes were reviewed and approved by the PCoRP Board of Directors.
The amended policy was sent out with the June 1, 2008, PCoRP renewal. The changes generated questions from producers and members. The questions mainly related to the meaning of the term "contracted lawyers" contained in the covered party definition. For example, one producer asked if the term would provide coverage for all of the attorneys engaged by the various elected officials, or if the coverage would further extend to other independent contractors hired to do work for a member. It was necessary to clarify that the intent is to cover lawyers doing criminal defense work for the member. The term "contracted lawyers" was included in the provision as there are rare occasions where a member may contract out for defense work due to a shortage of in house staff, a situation where a conflict of interest exists, or for other reasons. The term was not intended to be so broadly interpreted that it would extend coverage to all contracted attorneys working in any capacity for a member. In order to restrict coverage to its original intent, the Board agreed to issue an amendment to specifically define the term "contracted lawyer". A separate amendment has been issued that includes the following definition:
"Contracted lawyers means attorneys that are specifically court appointed to represent the indigent criminally accused."
It is hoped that the amendment will clear up any confusion as to the intent of the coverage that the Policy provides for attorneys doing defense work for a member, and will alleviate the need for these attorneys to turn to their own professional policies for coverage.
For more information call Karen Cohen, Property & Casualty Programs Manager, at 800-895-9039.
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QUOTE OF THE MONTH
"Employees don't just want a good place to work, they want a good place to be from."
- Eric Chester
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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.
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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