20082008

Fund CommissionerFund Commissioner

OrientationOrientation

April 15, 2008

Burlington County Burlington County Municipal Joint Insurance Municipal Joint Insurance

FundFund

Explain JIF ConceptExplain JIF Concept Provide JIF OverviewProvide JIF Overview

• Organizational StructureOrganizational Structure• Staff Roles & ResponsibilitiesStaff Roles & Responsibilities• Operations & ProgramsOperations & Programs• Coverage ProvidedCoverage Provided• Financial ResultsFinancial Results

Answer QuestionsAnswer Questions

Purpose of Today’s MeetingPurpose of Today’s Meeting

Burlington County Burlington County Municipal Municipal

Joint Insurance FundJoint Insurance Fund

This is YOUR JIF!This is YOUR JIF!We Are Here to Serve YouWe Are Here to Serve You

Use Fund Commissioner Use Fund Commissioner HandbookHandbook

Contact a Fund ProfessionalContact a Fund Professional

• Safety Consultant - Safety Consultant -

Commerce Risk Control ServicesCommerce Risk Control Services

• Managed CareManaged Care

CHN/CSGCHN/CSG

• Claims - Claims -

Scibal AssociatesScibal Associates

• Fund Administrator - Fund Administrator -

AJG Risk Management Services, Inc.AJG Risk Management Services, Inc.• Fund Attorney -Fund Attorney -

William J. Kearns, Jr., Esq. William J. Kearns, Jr., Esq.

Fund

Commissioner

Handbook

BURLCOJIF

Use your Risk Management Consultant

What’s A JIF?What’s A JIF?

JJointoint I Insurancensurance F Fund commonly und commonly referred to as a referred to as a “JIF”“JIF”

Successful example of inter-local Successful example of inter-local cooperation.cooperation.

Statutory Authorization - N.J.S.A.Statutory Authorization - N.J.S.A.40A:10-1 et. seq.40A:10-1 et. seq.

A JIF is a mechanism through A JIF is a mechanism through which municipalities can join which municipalities can join together to take advantage of together to take advantage of lower costs associated with self lower costs associated with self insurance.insurance. Why JIF?Why JIF?

JIFs Proved to be a Better JIFs Proved to be a Better Way!Way!

JIFs have allowed municipalities to join JIFs have allowed municipalities to join together to take advantage of lower together to take advantage of lower

costs and additional services costs and additional services associated with self insurance and to associated with self insurance and to

achieve achieve coverage and pricing coverage and pricing STABILITYSTABILITY!!

Who’s In The JIF?Who’s In The JIF? Bass River Beverly Bordentown City Chesterfield Delanco Delran Edgewater Park Florence Hainesport• Lumberton

Mansfield Medford Mt. Laurel Riverside Shamong Tabernacle Southampton SpringfieldWestampton

Medford Lakes, Moorestown, Evesham, Maple Shade, and Willingboro belong to affiliated JIFs

New Jersey’s Joint Insurance New Jersey’s Joint Insurance FundsFunds

Highly regulated:Highly regulated: Specific LegislationSpecific Legislation

• N.J.S.A. 40A:10-1 et. seq.N.J.S.A. 40A:10-1 et. seq... Rules and RegulationsRules and Regulations

• Department of Banking and InsuranceDepartment of Banking and Insurance• N.J.A.C. 11:15-2.1 et. seq.N.J.A.C. 11:15-2.1 et. seq.

Makes Joint Insurance Funds highly accountable!

JIF OperationsJIF Operations

Operating DocumentsOperating Documents JIF BylawsJIF Bylaws

• Set forth operating authoritySet forth operating authority• Requires 75% member Requires 75% member

approval to amendapproval to amend

Plan of Risk ManagementPlan of Risk Management• Updated each yearUpdated each year• Delineation of coverageDelineation of coverage• Claims handling philosophyClaims handling philosophy

Coverage DocumentsCoverage Documents• Distributed in June each year Distributed in June each year

Fund

Operating

Documents

BURLCOJIF

Organizational StructureOrganizational Structure

R isk M a n ag e m e n t C o n su lta n t

D e fen se P an e l

A tto rn ey T re a su re r

S a fe ty D ire c to r C la im s A dm in is tra to r

A u d ito r A c tu a ry

E xe cu tive D ire c to r/A d m in is tra to r

S a fe ty C o vera ge

F in an ce S tra te g ic P la nn ing

C o m m itte es

E xe cu tive C o m m ittee (Seven m em bers)

F u n d C o m m iss io n er(E lected O ffic ia l or Em ployee )

M e m b e r M u n ic ip a lity

JIF members are represented on a board that manages the fund, paying claims and investing its assets. The Fund hires an administrator, and the members share a safety director and specially qualified claims attorneys.

Fund CommissionerFund Commissioner

Member of Municipality’s Member of Municipality’s governing body - 2 yrs.governing body - 2 yrs.

One of its municipal One of its municipal employees - until replacedemployees - until replaced

ResponsibilitiesResponsibilities• Empowered to operate the FundEmpowered to operate the Fund• Represent municipalityRepresent municipality• Serve as liaison between Fund and municipality Serve as liaison between Fund and municipality

Fund ProfessionalsFund Professionals

Actuary – The Actuarial AdvantageActuary – The Actuarial Advantage Attorney - William J. Kearns, Jr.Attorney - William J. Kearns, Jr. Auditor – Bowman & CompanyAuditor – Bowman & Company Claims Administration - Scibal AssociatesClaims Administration - Scibal Associates Managed Care – CHN/CSGManaged Care – CHN/CSG Safety - Commerce Risk Control ServicesSafety - Commerce Risk Control Services Treasurer - Tom TontarskiTreasurer - Tom Tontarski Administrator - AJG Risk Management Services, Inc.Administrator - AJG Risk Management Services, Inc.

“The Fund hires an administrator, and the members share a safety director and specially qualified claims attorneys.”

Risk Management Risk Management ConsultantsConsultants

Under contract with municipality Under contract with municipality to provide specific to provide specific professional services:professional services:• update exposure dataupdate exposure data• place optional coverageplace optional coverage• respond to coverage respond to coverage

questionsquestions• order and review order and review

certificates of insurancecertificates of insurance• provide technical adviceprovide technical advice• other duties as negotiatedother duties as negotiated

Formerly served as insurance agent

JIF MeetingsJIF Meetings

Executive CommitteeExecutive Committee• Third Tuesday of each monthThird Tuesday of each month• Discuss reportsDiscuss reports• Review claimsReview claims

Committee MeetingsCommittee Meetings• as neededas needed

MEL - Jeff HatcherMEL - Jeff Hatcher RCF - Dave MatchettRCF - Dave Matchett E-JIF – Rich BrookE-JIF – Rich Brook

JIF Safety ProgramsJIF Safety Programs

Safety First, Last, and AlwaysSafety First, Last, and Always

Why is Safety Why is Safety Important?Important?

Safety is the cornerstone of a successful JIFSafety is the cornerstone of a successful JIF Prevention of claims is less costly in long runPrevention of claims is less costly in long run It makes good sense to reduce costs and risks It makes good sense to reduce costs and risks

associated with accidents because it’s your moneyassociated with accidents because it’s your money 76% of local JIF budget is devoted to claims 76% of local JIF budget is devoted to claims

paymentspayments An ounce of prevention is worth a pound of cure!An ounce of prevention is worth a pound of cure!

It’s your money!

“This savings comes through the pooling of assets and losses and the sharing of services,” NJ Banking and

Insurance Commissioner Elizabeth Randall explained. “And because the cities, towns and school boards own

the funds, they carefully monitor safety in order to reduce claims.”

Safety CoordinatorSafety Coordinator

Full time municipal Full time municipal employeeemployee

Usually supervisoryUsually supervisorylevel or abovelevel or above

ResponsibilitiesResponsibilities• Coordinate safety effortsCoordinate safety efforts• Chair municipal safety committeeChair municipal safety committee• Serve as liaison between CommerceServe as liaison between Commerce Nat’l and member municipality Nat’l and member municipality•Disseminate safety informationDisseminate safety information

SafetySafety DocumentsDocuments

• JIF Safety ProgramJIF Safety Program

• Loss Control PolicyLoss Control Policy

• Policies and Policies and proceduresprocedures

• Safety BulletinsSafety Bulletins

• Self-Help ChecklistsSelf-Help Checklists

Safety

Coordinators

Handbook

BURLCOJIF

JIF Safety ProgramsJIF Safety ProgramsHelping Towns Help ThemselvesHelping Towns Help Themselves

Member driven safety policiesMember driven safety policies On-site Loss Control SurveysOn-site Loss Control Surveys Policies, procedures and guidelinesPolicies, procedures and guidelines

• Self-help facilities checklistsSelf-help facilities checklists• Certificate of insurance guidelines Certificate of insurance guidelines • Accident investigation reportsAccident investigation reports• Safety HandbookSafety Handbook

Training Programs - MSITraining Programs - MSI• Right to Know, Defensive Driving, Right to Know, Defensive Driving,

Confined Space, etc..Confined Space, etc.. Safety BulletinsSafety Bulletins Seminars and Educational UpdatesSeminars and Educational Updates

• Police Civil LiabilityPolice Civil Liability• Sexual HarassmentSexual Harassment

Safety Video LibrarySafety Video Library

Optional Safety BudgetOptional Safety Budget Annual allowanceAnnual allowance Available to members to use to meet local safety needs Available to members to use to meet local safety needs

(i.e., equipment, supplies, training)(i.e., equipment, supplies, training) Can also be used to assist members in completing Can also be used to assist members in completing

Safety Director’s Suggestions for ImprovementSafety Director’s Suggestions for Improvement Reimbursement directly to municipalityReimbursement directly to municipality

Must be used by November 30, 2008

Balances published monthlyin JIF Agenda Packet

$27,900

Annual Safety Incentive Annual Safety Incentive ProgramProgram

Heighten Safety AwarenessHeighten Safety Awareness Encourage Safe BehaviorEncourage Safe Behavior Create a Safer WorkplaceCreate a Safer Workplace Build a Safety CultureBuild a Safety Culture Reward Safety EffortReward Safety Effort

• Annual cash awardsAnnual cash awards

The Safety Incentive Program is the most successful program of its kind in the state

with high member participation!

$23,525

Safety First!Safety First!““It’s better to be It’s better to be careful a hundred careful a hundred times, than to get times, than to get killed once.”killed once.”

Mark TwainMark Twain

MEL SAFETY INSTITUTEMEL SAFETY INSTITUTE(MSI)(MSI)

MEL Safety Institute (MSI)MEL Safety Institute (MSI)

Readily available training

Valuable training

Convenient training

Cost effective training

MEL Safety Institute MEL Safety Institute (MSI)(MSI)

All programs are available to all member employees.

Many of the training programs will provide Continuing Education Credits.

Initial focus was on regulatory compliance

Training provided on a regional basis, utilizing approximately 90 sites throughout the state.

MSI MSI Learning Learning Management Management System WebsiteSystem Website

On-line registration for MSI Classes On-line registration for MSI Classes Track MSI learning history Track MSI learning history Record external (non-MSI) learning eventsRecord external (non-MSI) learning events Planning & Recordkeeping toolPlanning & Recordkeeping tool Order videos on line Order videos on line Telephone HELP Line: Telephone HELP Line: 1-866-661-51201-866-661-5120

Improved MSI TrainingImproved MSI Training MORE CLASSES:MORE CLASSES: MSI conducted over 1,300 classes in MSI conducted over 1,300 classes in

2007 and MSI registrations topped 27,000 statewide!!2007 and MSI registrations topped 27,000 statewide!!

600 BURLCO Employees attended MSI Classes in 2007 600 BURLCO Employees attended MSI Classes in 2007

Class Updates and Revisions for 2008Class Updates and Revisions for 2008• Jetter / RodderJetter / Rodder• Heavy EquipmentHeavy Equipment• Ladder and Fall Prevention Ladder and Fall Prevention • Leaf Vac Leaf Vac • Sanitation & Refuse CollectionSanitation & Refuse Collection• Accident InvestigationAccident Investigation

More New MSI More New MSI Classes in 2008!Classes in 2008!

Bloodborne Pathogen Train-the-TrainerBloodborne Pathogen Train-the-Trainer Playground Safety InspectionPlayground Safety Inspection Seasonal Public Works OperationsSeasonal Public Works Operations Advanced Safety Leadership ProgramAdvanced Safety Leadership Program

Password = “mel”

NJMEL.ORGNJMEL.ORGOn-Line Safety VideosOn-Line Safety Videos

MEL Initiatives: On Line MEL Initiatives: On Line Safety Videos & Safety Videos & TrainingTraining

Storm Water Management TrainingStorm Water Management Training Crossing GuardsCrossing Guards Urban DrivingUrban Driving ““Survival Driving”Survival Driving” Don’t Do It – Don’t Take ItDon’t Do It – Don’t Take It On-line videos “for members only”On-line videos “for members only”

MEL VIDEO LIBRARYMEL VIDEO LIBRARY

Over 600 Titles!Over 600 Titles!

www.njmel.org

World Wide Web World Wide Web PagePage

Address: http:\\www.burlcojif.orgAddress: http:\\www.burlcojif.org Access to worldwide safety resourcesAccess to worldwide safety resources ““JIF Information Center”JIF Information Center”

WWW.NJMEL.ORGWWW.NJMEL.ORG

In the JIF, everyone In the JIF, everyone has has to be a Risk Manager!to be a Risk Manager!

We’re all in this We’re all in this together!together!

Everyone shares in Everyone shares in the JIF’s success!the JIF’s success!

Safety is everyone’s Safety is everyone’s job!job!

All employees and supervisors must recognize that they play an important role in risk management.

Risk Management . . .Risk Management . . .. . . Beyond Safety. . . Beyond Safety

Risk AvoidanceRisk Avoidance Risk TransferRisk Transfer

• Certificate of Insurance GuidelinesCertificate of Insurance Guidelines• Indemnification and Hold Harmless AgreementsIndemnification and Hold Harmless Agreements• Contract ReviewContract Review

Risk ControlRisk Control

Facilities

Contractors/Vendors

Special Events

JIF Claims JIF Claims ProgramsPrograms

When Florence has a claim ...When Florence has a claim ...

… … Medford says OUCH!Medford says OUCH!

REPORT ALL CLAIMS REPORT ALL CLAIMS PROMPTLY!PROMPTLY!

“Workplace injuries reported within ten (10) days of their occurrence cost an average of $10,172, while ones reported after thirty (30) days average $15,745, Kemper National Insurance Companies finds.

Early reporting leads to quicker treatment, while delay lets problems fester and increases chances of litigation, says Kemper.”

“LABOR LETTER’, THE WALL STREET JOURNAL, AUGUST 10, 1993

Time is money....

Still holds true today!

Claims CoordinatorClaims Coordinator

Full time municipal Full time municipal employeeemployee

Usually in Usually in administrationadministration

ResponsibilitiesResponsibilities• Coordinate prompt reporting of all claimsCoordinate prompt reporting of all claims• Maintain supply of claim formsMaintain supply of claim forms• Coordinate flow of information between Coordinate flow of information between Scibal and member municipality Scibal and member municipality

50%

AutoGLPropertyWC

74%

Auto

GL

Property

WC

BURLCO Claims ExperienceFund Years 2005 - 2007

50% our claims are for Workers CompensationBut they account for 74% of our costs!

Establish Claims Establish Claims ProceduresProcedures

Take charge and remain in controlTake charge and remain in control

Coordinate all claims reporting• Report accidents promptly• Require employees to report ALL injuries

Conduct prompt accident investigations• Gather facts & interview witnesses while

memories are fresh• Learn from mistakes and teach others

Direct medical care• 1-800 Claims Reporting 24/7

– Immediate medical intervention– Encourage early return to work

Establish lines of communication• Employee• Nurse Case Manager• Adjuster• Physician

Average Cost Per ClaimAverage Cost Per Claim(Fund Years 2005-2007)(Fund Years 2005-2007)

$3,129

$1,398

$9,140

$4,163

$0$1,000$2,000$3,000

$4,000$5,000$6,000$7,000$8,000

$9,000$10,000

Property Auto W.C. Liability

Liability claims are also costlyLiability claims are also costly! !

Liability IssuesLiability Issues

JIF Liability JIF Liability InitiativesInitiatives

Road, Sign and Walkway Road, Sign and Walkway Condition Report Condition Report ProgramProgram

Additional workshopsAdditional workshops• Snow plow safety, Snow plow safety,

jetter safety, etc.jetter safety, etc.• Personnel Personnel

policies/procedurespolicies/proceduresEPL Hotline!

Police Liability Police Liability InitiativesInitiatives

“Liability Beat” Newsletter Civil Litigation Handbook Police liability seminars

• Management of Aggressive Behavior

• Fatigue Awareness Seminar

Ad Hoc Committee of Chiefs Police specific safety

program

Law Enforcement Law Enforcement Accreditation ProgramAccreditation Program

Administered by NJ Association of Chiefs of Police

Application Fee waived for JIF members JIF will reimburse 50% of Accreditation &

Re-accreditation fee upon completion Participation is encouraged by JIF/MEL

5% MEL liability discount AND $1,000MEL Grant for agencies who completethe program

The proof is in the The proof is in the results....results....• Fewer ClaimsFewer Claims

• Premium StabilityPremium Stability

• Dividends!Dividends!

Is It Worth the Is It Worth the Effort?Effort?

Fewer ClaimsFewer ClaimsFewer ClaimsFewer Claims281

252

0

50

100

150

200

250

300

1994 2007

An 11% increase in claims as membership has grown by 80%!

11%

Average Cost Per Average Cost Per ClaimClaim

Average Cost Per Average Cost Per ClaimClaim

$1,975

$5,753

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

1994 2007

Claims Counts are Steady But Severity is on the Rise!

Budget StabilityBudget Stability

1.51%

4.61%

4.76%

14.03%

8.40%

3.40%

-1.30%

10.83%

13.88%

-25.00%

-15.00%

-5.00%

5.00%

15.00%

25.00%

35.00%

45.00%

Budget Change

20002000 20012001 20022002 20042004 200620062005*2005*2003*2003* 20072007 20082008

* Indicates Increase in JIF SIR

JIFs Pay JIFs Pay DividendsDividends

Finance Committee returned Finance Committee returned $300,000 in surplus to members $300,000 in surplus to members last year:last year:

• Take as checkTake as check• Offset 2008 billOffset 2008 bill• Bank it for futureBank it for future “Rainy Day Fund” “Rainy Day Fund”

All money not required to pay claims is returned to members in direct proportion to amount they paid into the Fund.

Total Combined Dividends = $3,280,854Total Combined Dividends = $3,280,854

Comparison of MembersComparison of MembersMember 2008 2007 Dividend Net Assessment

Beverly City 186,796$ 11,985$ 174,811$

Delanco Township 157,777 17,875 139,902

Delran Township 434,134 38,954 395,180

Florence Township 419,427 44,317 375,110

Hainesport Township 113,038 13,037 100,001

Lumberton Township 375,634 41,989 333,645

Mansfield Township 212,856 15,640 197,216

Medford Township 832,160 72,317 759,843

Riverside Township 308,330 28,330 280,000

Shamong Township 79,430 8,597 70,833

TOTAL $3,119,582 $293,041 $2,826,541

2007 Dividend Represents 10% of Budget!

JIF FinancesJIF Finances

BudgetBudget AuditAudit CoverageCoverage

Loss RunsLoss Runs• Lists all claimsLists all claims

– Name of claimantName of claimant– Date of lossDate of loss– PaymentsPayments

FinancialsFinancials• TreasurerTreasurer• Audit Audit • Financial Fast TrackFinancial Fast Track

Loss Ratio SnapshotsLoss Ratio Snapshots• Quarterly reportQuarterly report• Three years resultsThree years results• Listing of open claimsListing of open claims

JIF ReportsJIF Reports

MiscellaneousMiscellaneous•LTAFLTAF•Late reporting timesLate reporting times

JIF and MEL BUDGETJIF and MEL BUDGET

56%

24%3%

4%

13%

Claims Operations RMC MEL E-JIF

24% of budget protects Fund from catastrophic loss.

MEL

JIF BUDGETJIF BUDGET

76%

6%18%

Claims

Operations

RMC

76% of our budget is devoted to claims payments!Where does all the money go?

Claims

Loss Funds BudgetLoss Funds Budget

8%

20%

67%

5%

Property

Auto

Liability

WorkersComp

8% Pays for Property 8% Pays for Property DamageDamage

Replacement CostReplacement Cost

Including Boiler & Machinery and Crime!Including Boiler & Machinery and Crime!

City Hall

5% for Automobile 5% for Automobile LiabilityLiability $5,000,000 limit per $5,000,000 limit per

accident (Option to $20M)accident (Option to $20M)

Covering all municipal vehicles.Covering all municipal vehicles.

20% for General Liability 20% for General Liability $5,000,000 limit per occurrence (Option to $5,000,000 limit per occurrence (Option to

20M)20M)

Injuries to members of the publicInjuries to members of the public

67% for Workers 67% for Workers CompensationCompensation Statutory benefitsStatutory benefits

This is where we have to work hardest!This is where we have to work hardest!

MEL CoverageMEL Coverage

Public Officials LiabilityPublic Officials Liability Employment Practices Employment Practices

LiabilityLiability

MEL issues periodic Coverage Bulletins

•Various Sub-CommitteesVarious Sub-Committees– LegislativeLegislative– SafetySafety– CoverageCoverage

Financial StructureFinancial Structure

JIF retains lower layer of claimsJIF retains lower layer of claims• $ 50,000 Property$ 50,000 Property• $200,000 Liability$200,000 Liability• $200,000 Workers’ Compensation$200,000 Workers’ Compensation

JIF purchases “Large Loss” protectionJIF purchases “Large Loss” protection• $100,000,000 Property$100,000,000 Property• Up to $20,000,000 LiabilityUp to $20,000,000 Liability• Statutory Workers’ CompensationStatutory Workers’ Compensation

Can’t a big claim hurt us?

Financial StructureFinancial Structure

JIF retains low level of lossJIF retains low level of loss

$20,000,000

MELProtects JIF from Large Losses

$200,000Joint Insurance Fund

Covers smaller routine claims(Working Layer)

MEL protects JIF from catastrophe losses

What’s our bottom What’s our bottom line?line?

(BURLCO Financial Results as of June 30, 2007)(BURLCO Financial Results as of June 30, 2007)

ContributionsContributions PaymentsPayments

• Sub-totalSub-total Investment IncomeInvestment Income Return of SurplusReturn of Surplus

• Cash PositionCash Position Case ReservesCase Reserves

• Position after ReservesPosition after Reserves IBNR ReservesIBNR Reserves

• AggregateAggregate Excess Recov.Excess Recov.

• Net SurplusNet Surplus

$33,190,034$33,190,034

(25,292,250)(25,292,250)

$7,897,784$7,897,784

2,445,6172,445,617

(2,814,386)(2,814,386)

$7,529,015$7,529,015

(2,048,114)(2,048,114)

$5,480,901$5,480,901

(920,538)(920,538)

00

$4,560,363$4,560,363

There’s Nothing Like There’s Nothing Like Success!Success!

The JIF has The JIF has succeeded far succeeded far beyond its founders beyond its founders dreams!dreams!

So what can hurt us?

MEMBERS MUST AVOID MEMBERS MUST AVOID COMPLACENCYCOMPLACENCY

Support the JIF programs:Support the JIF programs:• SafetySafety

– In house effortsIn house efforts– Training seminarsTraining seminars

• Claims ManagementClaims Management– Prompt reportingPrompt reporting– Internal coordinationInternal coordination

• Risk ManagementRisk Management– Certificates of InsuranceCertificates of Insurance– Special EventsSpecial Events

Our Most Important Our Most Important MemberMember

For the JIF to succeed, For the JIF to succeed, every member must every member must

participate in the participate in the JIF SafetyJIF Safety, ,

Claims ManagementClaims Management, and , and Risk Management Risk Management

ProgramsPrograms

Membership Membership CommitmentCommitment

SafetySafety• Adoption of Policy StatementAdoption of Policy Statement

• Appointment of Safety CoordinatorAppointment of Safety Coordinator

• Development of Safety CommitteeDevelopment of Safety Committee

• Attendance at Training SeminarsAttendance at Training Seminars

Claims ManagementClaims Management• Appointment of Claims CoordinatorAppointment of Claims Coordinator

• Prompt Reporting of All ClaimsPrompt Reporting of All Claims

• Adoption of Tort Claims Notice QuestionnaireAdoption of Tort Claims Notice Questionnaire

Membership Membership CommitmentCommitment

Risk ManagementRisk Management• Implementation of Certificate of Insurance Implementation of Certificate of Insurance

GuidelinesGuidelines

• Review of Contractual AgreementsReview of Contractual Agreements

ParticipationParticipation• Attendance at Monthly Executive Committee Attendance at Monthly Executive Committee

MeetingsMeetings

• Involvement through Committee AssignmentInvolvement through Committee Assignment

• Three Year Membership AgreementThree Year Membership Agreement

A JIF is NOT an Insurance Company !

Additional Member Additional Member BenefitsBenefits

Property AppraisalsProperty Appraisals• Performed by MaximusPerformed by Maximus• Paid for by JIFPaid for by JIF• Eligible for further discounts on fixed assetEligible for further discounts on fixed asset

inventoriesinventories EPL Attorney HotlineEPL Attorney Hotline MSI Training – No Additional CostMSI Training – No Additional Cost

Can I buy it cheaper Can I buy it cheaper elsewhere?elsewhere?

In the depths of a soft market you In the depths of a soft market you maymay be able to buy cheaper be able to buy cheaper insurance - insurance - but what about next year?but what about next year?

Will we have all the coverage we Will we have all the coverage we require?require?• JIF negotiates broad JIF negotiates broad

coveragecoverage• After a loss, no one asks what After a loss, no one asks what

the insurance cost! the insurance cost! Examine Examine allall the facts the facts

premiums, dividends, premiums, dividends, surplus, stability surplus, stability..

Maybe, but will they be there tomorrow?Maybe, but will they be there tomorrow?

$ $

““After largely shunning local After largely shunning local governments in the 1970s and governments in the 1970s and 1980s, insurance companies are 1980s, insurance companies are now vying for their business.” now vying for their business.” American City & County - Jan. 1998American City & County - Jan. 1998

Beenthere ...

Donethat !

Long Term Long Term StabilityStability

Remember why JIFs Remember why JIFs formed in the first formed in the first place:place:• Hard market!Hard market!

–High ratesHigh rates–Loss of coverageLoss of coverage

Not a single JIF has Not a single JIF has ever failed to meet its ever failed to meet its obligationsobligations..

JIFs will outperform insurance industry in the long run because of their conservative nature and emphasis on cost control, loss control, and claims management!

Membership ProcessMembership Process RequirementsRequirements

• exposure auditexposure audit• claims historyclaims history• loss control surveyloss control survey• actuarial reviewactuarial review• approval by Fund’s Executive Committeeapproval by Fund’s Executive Committee

TimetableTimetable• 45 days to complete application45 days to complete application• 45 days for Fund to process application45 days for Fund to process application

CostCost• $1,500/$600 paid by applicant$1,500/$600 paid by applicant

– loss control surveyloss control survey– actuarial reviewactuarial review

Questions?Questions?