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Insurance Matters November 2008
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November 2008 |
Vol 12, Issue 11 | |
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Owned by Members Governed by Members Service to Members
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Specialty Lines |
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How much surplus is enough? Over the last several years one of the hottest topics in the public entity pooling community has been how to determine the "right" amount of surplus a pool should retain. Much depends on the pool's general operating philosophy. For example, if the pool members rely on regular dividends back from the pool for good experience, then the pool needs to charge more for coverage, and in general will need more surplus. If the pool members want broad coverage at the best price, but also strongly desire a fixed annual budget number rather than rely on dividends, then less surplus may be needed.
Either way, pools need to define their ideal level of surplus in order to be able to weather poor claims years and unexpected costs (such as a huge shake up in the stock market). The other reason to establish the finances needed for a surplus is to ensure the proper price is charged to the members, who normally want their pool to be strong financially. If the pool's surplus is too large, members may wonder why so much money is being retained and whether the premiums being charged by the pool are reasonable.
CCAP's insurance programs all have surplus goals. The policies differ slightly depending on the type of coverage being provided, and the risk being retained by the pool itself. Each program board has had extensive discussions about how much surplus is sufficient, and how to achieve the desired level of funding. These are not once-and-done discussions. At each meeting we review the status of surplus goal, and have from time to time revised the surplus targets.
The recent large plunges in the stock market naturally raise the question of what impact this has had on CCAP's insurance programs. Fortunately, our insurance programs do not depend on investment income for operating expenses, or to pay claims. We assume some investment return in actuarial calculations of the future payout of claims, particularly for liability claims which have a long payout timeframe. However, this investment income assumption is tied to our fixed income return and is very conservative. Our investment income mainly builds our surplus.
So the bottom line is that in general the surplus position of each insurance program took a hit with the recent drops in the stock market. Fortunately, each pool is in pretty strong shape and has developed enough surplus to deal with the drop in investment return. So the bad experience with Wall Street is a good example of why it is important to manage surplus well.
Make sure you call us when you need help with something,
John Sallade
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COMCARE Board Vacancies |
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By Christie Ward, Captive Programs Manager
The Board of Directors for COMCARE, The County Managed Care Resource, has vacant seats for Commissioner/Council Members.
Elected and appointed seats are held for three years. The ten member board meets four times a year, twice after CCAP conferences (Spring and Fall).
COMCARE, a program of the County Commissioners Association of Pennsylvania, provides a resource to assist counties with the administration of managed behavioral healthcare, specifically HealthChoices.
Commissioners and Council Members interested in a seat on the COMCARE board are asked to contact Christie Ward, Captive Programs Manager or John Sallade, Managing Director of the CCAP Insurance Programs, 800-895-9039.
For more information on COMCARE, visit our Web site at www.ccapcomcare.org.
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Winter Weather Safety Tips |
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By Greg Cunningham, ARM, Loss Control Specialist
When cooler weather and precipitation hit your neck of the woods it's a good idea to be prepared. Please follow these tips and attached links to better prepare for old man winter!
FOR THE BODY
Whether you're shoveling snow or playing in it, staying dry equates to staying warm in the cooler, wet months. Due to its density, water conducts heat away from the body 25 times faster than air alone! Also, covering your head to retain heat and wearing decent winter garments made primarily of man-made fabrics should help. Cotton is a poor choice for layering because it soaks up water, dries slowly and keeps moisture next to your skin. The following is a breakdown of proper layering for cold weather activities:
- Base Layer-long underwear made of silk or synthetic materials; this layer should be high quality and thin enough to be comfortable when layering.
- Insulating Layer-usually a mid-weight jacket made of fleece or wool; this layer keeps a pocket of warm air next to the body.
- Outer Layer-usually man made materials, water/wind proof and breathable. Gore Tex is popular due to its light weight, water resistance and durability.
- Good boots-a good pair of insulated, waterproof boots go a long way in making your time outside bearable.
Top off your outfit with proper accessories such as hats, scarves and gloves. If you are outside during the day, a pair of sunglasses is a good idea to help with sun reflecting off the snow.
FOR THE HOME
Unfortunately, as our need for heat increases during the cooler months so do home heating fires. Fires caused by portable heating devices are of particular concern and the American Red Cross found that almost half of all Americans use some type of alternative heating method such as space heaters, fireplaces and wood burning stoves. The following fire safety tips are easy to follow:
- Make sure you have functioning smoke detectors and change the batteries every year.
- If you use a fireplace or pellet stove make sure it's cleaned periodically throughout the heating season to lessen the chances of a fire in your chimney. The following link has some good information related to cleaning your heating equipment: http://www.bobvila.com/HowTo_Library/Cleaning_a_Fireplace_Chimney-Fireplaces_and_Wood_Stoves-F2127.html.
- Never leave fires, stoves or portable heating devices unattended.
- If you use portable heaters make sure you place them on a non-flammable hard surface. Do not place them on carpeting or rugs, near drapes or bedding. Ensure children and pets steer clear of these devices as well.
- Make sure the heaters are turned off when the room is empty and before you go to sleep. Tragically, many home fires in the winter months occur at night which can complicate emergency egress as well as the response by fire personnel.
FOR THE CAR
When driving during winter months a simple philosophy should help; slow down! Give yourself more time to arrive at your destination, don't follow too closely and simply drive slower in general. Other guidelines to follow include:
- Always properly maintain your vehicle; this is crucial in colder months. A decent all-weather tire should help when things get slippery.
- Properly clear your vehicle of snow and ice before hitting the road. While the vehicle is warming-up, clear all glass surfaces and mirrors. Make sure the vehicle's tailpipe is clear of any obstructions while idling.
- In messy road conditions it's easy to use a half-gallon or more of windshield washer fluid. Always keep the reservoir full and some extra fluid in your trunk.
- Remember to always wear your seat belt. Also keep in mind that if your windshield wipers are on, PENN DOT requires that your headlights be turned on as well.
- Consider placing a first-aid kit in your vehicle in case of breakdowns or being stranded in the cold.
Check out the following link for what NOAA (National Oceanic and Atmospheric Administration) has to say on Winter Weather safety:
http://www.weather.gov/os/winter/index.shtml
Hopefully these tips will help keep you safe this winter season. Visit the loss control pages of the CCAP Web site www.pacounties.org, linked here and under Quick Links above, for a list of loss control services, contact information for the loss control staff, and a lengthy list of loss control Web site links. |
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Lancelets Away |
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By Jonathan Buehler, Claims Representative 1
A GROWING CONCERN IN PRISON HEALTHCARE PRACTICES
Inmates are entitled to proper medical attention. County prisons offer a variety of services needed to keep inmates in a healthy condition. One of those services is providing daily testing of blood sugar levels for inmates who have diabetes. This is a simple test that draws a small specimen of blood from a device that pricks the finger or arm. The test will reveal the level of sugar in the blood and let the individual know if a shot of insulin is needed to control their sugar levels. This normally occurs before food is served to the inmates. But even this simple test can pose a risk to county employees.
We are seeing a concerning trend in prison related claims. Correctional officers are accidentally sticking themselves with used lancets from blood sugar testing (see fig.#1), exposing themselves to potential life threatening risk. The lancet is a single tip of a needle used to puncture the skin which draws the small specimen of blood. They are used once and then discarded in a sharps bin. The opportunity for transmittal of an infectious disease is likely if the lancet is allowed to puncture anyone else after use. Certain blood borne pathogens like Hepatitis A, B, C, and the HIV virus could be contracted in this manner. According to statistics from the American Nurses Association, reported by Susan Whittaker MSN, RN, a small fraction of the total healthcare cost for a needle stick to a healthcare provider can range from $1,500 to $3,000 dollars. And this does not include the emotional trauma and other impacts on the affected employee.
We are seeing that because this blood sugar testing process is thought to be pretty simple, many counties have no protocols limiting who is able to participate in the testing process. Typically a corrections officer would assist an inmate in testing. Education and proper procedures are necessary to keep this process from creating more exposure to risk. Accidents could be life changing for the individuals involved. By taking some proactive steps in standardizing the testing method used, counties can limit the exposure to employees and inmates. One way hospitals have been successful in reducing exposure is the use of a clear divided storage box which allows all the equipment to be visible. The accessibility of a separate mobile sharps box could greatly reduce the steps in the handling of infectious materials. The convenience of discarding items on the spot minimizes the exposure to the corrections officers and others. Some facilities use bags that are similar to overnight personal hygiene bags which contain a main compartment with outside supporting pockets. This type of bag allows the contents to be hidden out of sight increasing the level of risk. Potentially, these bags could be a large part of the problem. The clear divided box suggested earlier would instead allow for an easier inventory of the items without the use of feeling around for items in the nontransparent bag. This small step in conjunction with the use of the mobile sharps container would greatly decrease the time of exposure between the test and the disposal of the items following the test. These improvements would eliminate any reason for county personnel to be handling the potentially threatening used lancets through hallways and control rooms and exposing others.
This act of testing blood sugar is not complex; however, the results it could bring to an individual from one accidental prick of a needle could be significant. Safety reduces or eliminates risk.
For more information email Jonathan Buehler, Claims Representative I, or call 800-895-9039. |
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PELICAN Insurance Begins Renewal Process |
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By Steve A. McDermott, CPCU, Captive Programs Director
PELICAN Insurance members' policies expire March 1, 2009. We started the renewal policy process by providing the members' insurance producer with our renewal application, which was emailed on October 17, 2008. We have requested electronic receipt of the renewal application, and all supplemental materials, no later than Friday, December 12, 2008. PELICAN members should already have been contacted by their producer to begin the renewal process.
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.
Membership is open to current PACAH Full Voting Member and Associate Member non-profit nursing homes. This program is not open to for-profit facilities.
If you would like additional information regarding the PELICAN Insurance program, email Steve McDermott, Captive Programs Director, or call 800-895-9039 ext. 3324.
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Financial Fitness Program - Free for CCAP UC Trust Members' Employees and Families |
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By Lauren Kenes, Insurance Programs Administrative Assistant
The Mazzitti & Sullivan Employee Assistance Program (EAP) has expanded its services to include the BALANCE Financial Fitness Program. The BALANCE Financial Fitness Program provides confidential money management and debt consolidation services over the phone, and includes Housing Counseling (buyer education, affordable housing, early delinquency intervention, default and foreclosure, reverse mortgages, and tenant rights). Free printed materials are also available to callers to help them with money management, bankruptcy prevention or housing issues. Resources on these topics and more are available online at
www.balancepro.net or www.mseap.com.
BALANCE also offers current Credit Reports (with scores) and a Credit Report Review for only $15.00 per report - and you won't have to sign up for any confusing "Credit Monitoring Services" or worry about identity theft from disreputable websites. BALANCE can also provide a Debt Management Plan for an additional low fee.
The Mazzitti & Sullivan EAP and its menu of services are available to all CCAP UC Trust members' employees and the members of their household at NO COST. For more information on the EAP or the CCAP UC Trust, contact Julia Jackson at 800-895-9039. |
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Four More Training Opportunities This Fall! |
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By Linda Rosito, Insurance Training Director
The fall workshop season is quickly coming to a close and it has been a very successful training season. The following is a list of opportunities still available for you this fall.
NOVEMBER WORKSHOPS
· Wednesday , November 5 - Effectively Dealing with Incivility in the Workplace, CCAP North Office, Harrisburg
· Thursday, November 6 KEYS: Reasonable Suspicion Drug and Alcohol Testing, Best Western/Country Cupboard, Lewisburg
· Wednesday, November 12 - Prison Personnel Workshop, Penn Stater, State College
· Thursday, November 13 - PELICAN Loss Control Workshop , Penn Stater, State College
Visit Glimpse Online to view the details and to register. If you have any questions, please feel free to contact a member of the Insurance Training Staff.
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Internships Available at CCAP |
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By John Sallade, Managing Director, CCAP Insurance Programs
CCAP's Unemployment Compensation Trust has sponsored interns at CCAP since 1995. The Trust is an intergovernmental cooperative providing unemployment compensation insurance, claims management, and an Employee Assistance Program to 42 counties and to CCAP. In 2006 the UC Trustees named the internship in honor of a long time Trustee, David Steinbach, former Chief Clerk of Bucks County, who died in 2005. In addition to naming the internship for David, a $500 scholarship was added to the program.
The internship experience is an opportunity for both the student and CCAP. There are always a number of special projects which CCAP staff need assistance completing, and interns allow us to have someone to coordinate the work and ensure it is accomplished in a set period of time. Students benefit in several ways, including learning about Pennsylvania county government, work experience as a staff member of a statewide association, participation in CCAP staff events and meetings, and completion of a project or projects related to the student's major.
The David Steinbach Memorial Internship is available to junior, senior and postgraduate college students in the following majors: public administration, government, public affairs, insurance, risk management, actuarial science, communications, public relations, business administration, human resources,
meeting planning and hotel management. Other majors may be considered depending on the project work available for the internship period.
The CCAP UC Trust funds one internship position each semester (spring, summer and fall) of the college year. Interns are paid $10 per hour and at the end of successful completion of the internship receive an additional $500 scholarship from the CCAP UC Trust.
Over the years CCAP has hosted interns from Bloomsburg University, Elizabethtown College, Gettysburg College, Messiah College, Penn State Harrisburg, Shippensburg University, the University of Pittsburgh, York College and more.
If you know of someone who would be interested in the internship, please click hereto link to a copy of the internship application, or contact John Sallade at CCAP.
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COMCARE PRO Subscriber's Meeting To Be Held November 25, 2008 |
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By Stephen A. McDermott, CPCU, CCAP Captive Programs Director
COMCARE PRO holds a meeting of its subscribers each year. This year this meeting will take place Tuesday, November 25 at the end of the CCAP Fall Conference at the Hotel Hershey in Hershey, Pennsylvania. The COMCARE PRO Subscriber's meeting will begin immediately following the conclusion of the COMCARE Delegate's meeting. The meeting will begin with lunch at noon. The meeting will be held in the Castilian room of the Hotel Hershey. This meeting is open to COMCARE PRO SAC members, COMCARE PRO Subscribers, and COMCARE PRO vendors.
Registration for our meetings is being done on-line. To register, please click on the following link: COMCARE PRO Subscriber's Meeting Registration
COMCARE PRO is a reciprocal insurance exchange organized under the laws of the State of Vermont that operates as a risk retention group pursuant to the federal Liability Risk Retention Act of 1986 (LRRA). COMCARE PRO provides stop-loss liability insurance to Pennsylvania counties and non-profit corporations (whose sole members are Pennsylvania counties) that (i) are participants in the Behavioral Health program of HealthChoices, Pennsylvania's Medicaid managed care program, (ii) are participants in the County Managed Care Program (COMCARE) of the County Commissioners Association of Pennsylvania (CCAP), and (iii) meet the RRG's underwriting standards. COMCARE PRO provides stop-loss liability insurance coverage on a claims-made basis.
For more information please email Stephen A. McDermott, CCAP Captive Programs Director, or call 800-895-9039.
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Workshop Dates - Spring 2009 |
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By Linda Rosito, Insurance Training Director
Yes, we are thinking spring! The following are confirmed dates for workshops for the spring season. Please mark your calendars and look for more information.
· March 19 - PComp Loss Control Workshop - State College
· March 26 - Maintenance Workshop - State College
· April 1 - KEYS Workshop - Harrisburg
· April 2 - Defensive Driving - Lewisburg
· April 7 - PCoRP Loss Control Workshop - State College
· April 16 - Defensive Driving - State College
· April 16 - UC Trust Sponsored Workshop - State College
· April 21 - KEYS Workshop - Harrisburg
· April 22 - KEYS Workshop - Cranberry Twp.
· April 22 - KEYS Workshop - Lewisburg
· April 23 - UC Trust Sponsored Workshop - Scranton
· April 29 - UC Trust Sponsored Workshop - Harrisburg
· May 1 - Defensive Driving - Harrisburg
· May 6 - KEYS Workshop - Hilton, Scranton
· May 7 - KEYS Workshop - Harrisburg
· May 13 - KEYS Workshop - Cranberry Twp.
· May 20 - UC Trust Sponsored Workshop - Lewisburg
· May 21 - Prison Risk Management Workshop - Hershey
· May 27 & 28 - County Administration Conference - State College
Topic selection for the spring will be taking place soon. If you have any suggestions for topics, please feel free to email them to me at lrosito@pacounties.org. Your input is welcomed and greatly appreciated.
Stay tuned!
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Quote Of The Month
"Making duplicate copies and computer printouts of things no one wanted even one of in the first place, is giving America a new sense of purpose."
- Andy Rooney
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CCAP Insurance Programs
PO Box 60769, Harrisburg, PA 17106-0769
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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