2011-03-09 BOD Meeting10:00 a.m.
Consent Agenda
PUBLIC RISK MANAGEMENT OF FLORIDA
BOARD OF DIRECTORS MEETING
Terrace Hotel
Lakeland, FL
March 9, 2011
AGENDA
CaII To Order John Litton, Chairperson
1. Request Approval of June 18, 2010 Board Meeting Minutes
2. Request Approval of Treasurer's Report as of December 31, 2010
Any Board Member may request to have an item removed from the Consent Agenda and placed on the Regular
Agenda for further discussion.
Regular Agenda
3. Executive Director's Report Ross Furry, Executive Director
A. Request Board Approval of 10/1/2011 -12 Administrative Budget
B. Request Board Approval to Utilize Surplus to Reduce Member Premiums
C. Referral Campaign Discussion & Approval
D. 2011 Meeting Dates
E. Telephonic Claims Reporting
F. Member On -Line Access to Risx Facs
G. 2011 Educational Conference
4. Broker's Report
Hasib Bangloria, Ballator Insurance Group
Andy Cooper, World Risk Management
A. 10/1 Effective Date Revision & Extension Update
B. PRM Property Extension Program Overview
C. PRM Financial Overview — Final Assessment of Financial Impact of 10/1 Change
D. Property & Casualty Renewal 2011 — Status, Update, Overview
1. Renewal Timeline
2. Critical Bind Dates for Property and all other lines
3. Excess Placement Marketing Plan
E. Enhancements: Items to be Considered for upcoming Renewal
1. 2 Year Program Offering
2. Deductible Program Offering
F. WRM Broker Service Report & Member Visit Log
G. WRM & Ballator Team Enhancements
5. Chairperson's Items
A. Executive Director's Evaluation
B. Election of Officers — June Board Meeting
John Litton, Chairperson
6. Legal Counsel Report Donovan Roper, Esquire
7. Board Member Items
Public Comment: State full name and address. Discussion must be limited to a maximum of five (5) minutes per
person.
Adjournment
PUBLIC RISK MANAGEMENT OF FLORIDA
BOARD OF DIRECTORS MEETING
MARCH 9, 2011
1. Request Approval of
Background:
2. Request Approval of
Background:
CONSENT AGENDA SUMMARY
June 18, 2010 Board Meeting Minutes
Meeting Minutes attached
Treasurer's Report as of December 31, 2010
Financial Report Attached
Board Action:
_Approved
Denied
Deferred
Other
1. BOARD MEETING MINUTES
6/18/10
PUBLIC RISK MANAGEMENT OF FLORIDA
BOARD OF DIRECTORS MEETING
HILTON BEACH RESORT, MARCO ISLAND, FL
June 18, 2010
MINUTES
Attendance: Preferred Members: Kathy Bennett, City of Avon Park; Lester Baird,
Barron Water Control District; J. P. Murphy, Town of Belleair; Vivian Hunter, City of
Belle Glade; Steve Baumgartner, City of Brooksville; Ted Byrd, City of Clewiston; Jerry
Hill, DeSoto County BOCC; Mike Sheppard, City of Eustis; Mark Ben - Asher, City of
Florida City; Mary Ann Dotson, Glades County BOCC; Denise Manuel, Gulf County
BOCC; Earl Reeves, City of Gulfport; Jane Long, Hardee County BOCC; Jennifer Davis,
Hendry County BOCC; Sandy Sanders, City of Indian Rocks Beach; Michael Boyle, City
of LaBelle; Deanna Cox, Town of Lady Lake; John Litton, City of Lake Mary; Jacqueline
Martin, Levy County BOCC; Gerald Wilson, Town of Longboat Key; Jeff Sutton, City of
New Port Richey; Steve Gailbreath, City of North Port; Sharon Allison, City of
Okeechobee; Robbie Chartier, Okeechobee County BOCC; Connie Collins, City of
Oviedo; Mary Kendall, City of Pahokee; Phil Wickstrom, City of Punta Gorda; Martin
Lange, Sarasota /Manatee Airport Authority; Mike Eastman, City of Sebring; David
Davis, South Florida Conservancy District; Dana March, Sun `n Lake of Sebring
Improvement District; Crissy Bublitz, City of Tavares; Woody Hubbard, City of Temple
Terrace; James Braddock, City of Wauchula, Frank Gilbert, City of Winter Garden;
Katrina Bouthot, City of Zephyrhills; Standard Member 1S]: Theresa Walker, City of
Maitland
Absent: City of Fort Meade, Holmes County BOCC, Town of Kenneth City, [S] City of
Key Colony Beach, Town of Lake Placid, City of Lake Wales, [S] Town of Lantana, City
of Longwood, City of Moore Haven, [S] Port of Palm Beach, City of Port Richey, City of
Safety Harbor, [S] Seacoast Utility Authority, City of South Pasadena, City of St. Pete
Beach
Chairperson John Litton called the meeting to order at 9:15 a.m. with a quorum present.
Consent Agenda
1. Request Approval of March 12, 2010 Board Meeting Minutes
2. Request Approval of Treasurer's Report as of March 31, 2010
Michael Boyle made a motion to approve the consent agenda. Jane Long seconded the
motion, and it was unanimously approved.
6/18/10
Page 1
Regular Agenda
3. Broker's Report
A. Property Renewal — Hasib Bangloria advised that property coverage
was successfully renewed on 6/1/10 with enhanced coverage at
considerable savings.
B Market Update — Mr. Cooper anticipated that the Liability and Workers'
Compensation rates will remain flat. Property rates reduced with more
capacity available to reinsurers.
C. Renewal Submission — The broker advised the renewal application has
been revamped to make completion easier. Any member needing
assistance may contact World Risk Management.
The Chairperson brought up that some members had indicated their
preference for returning the policy renewal date to 10/1 to coincide with
the fiscal year. Earlier this month the Executive Board requested the
broker to investigate this possibility at no increase in rate. The broker
advised that the Casualty, Liability and Workers' Compensation carriers
are willing to accommodate the change. The Executive Director advised
withdrawal notice requirements would also change to 10/1. Effective
1/1/11, state legislature will limit withdrawal notice requirements for pools
to no more than 60 days. The Chairperson indicated the change would
place an additional commitment on members to remain in the Pool until
10/1/11, except for the member who had already submitted their notice to
withdraw on 4/1/11. Mr. Litton asked Mr. Roper if that was correct and he
responded in the affirmative. Phil Wickstrom made a motion to change
the policy renewal to 10/1 with no increase in rate. Jeff Sutton seconded
the motion, and it was unanimously approved.
4. Guest Speaker: Dan O'Keefe, Moore Stephens Lovelace, P.A.
WRM Independent Audit
The Executive Board contracted with Mr. O'Keefe of Moore Stephens
Lovelace to perform an independent audit on methodology for premium
calculations and pricing of the overall program. Mr. O'Keefe provided an
overview of his audit to Board Members reporting that there were no
improprieties but suggested additional documentation for various financial
transactions be provided PRM before payments are made.
6/18/10
Page 2
5. Guest Speaker: Karen Fontenont, CPA
PRM Audit — Financial Statements for YE 9/30/09
Ms. Fontenont presented her recommendations to the Board regarding the
audit for year ending 9/30/09. She recommended the balance sheet be
reconciled more frequently, rather than at year end. The auditor noted
that the Board had approved a $2 million participation credit from surplus
funds to offset member Loss Fund contributions and the actual cost
exceeded $2 million. The Chairperson recommended that the Board
authorize the participation credit from surplus funds for Toss fund
contributions not to exceed $2,015,000. Mr. Ben -Asher made the motion,
seconded by Mr. Byrd and unanimously approved.
6. Guest Speakers: Will Peacock & Kathy Kettering, Merlinos & Associates
(Insurance Industry Consultants)
Actuary — Allocations & Rating Methodology
Representatives from the actuarial firm were unable to attend the meeting.
Mr. Furry advised the actuary was working closely with World Risk
Management on the new Velocity software for implementing a better rating
system to determine overall pool funding and member allocations.
7. Executive Director's Report
A. Member Safety Awards — The following Members were acknowledged
for Best Overall Safety Performance and Most Improved Safety
Performance:
Best Overall — City of Okeechobee, small employer
City of Lake Wales, medium employer
City of Winter Garden, large employer
Most Improved — Town of Lake Placid, small employer
City of Gulfport, medium employer
City of Eustis, large employer
B. PRM Activity Report — Mr. Furry advised that two Members have
recently elected to join the Group Health Trust.
8. Executive Director Evaluation — Mr. Litton advised that Members' evaluations
indicated Mr. Furry's overall performance is outstanding. Mr. Litton requested
that he personally visit their entities. A 5% salary increase for the Executive
Director was included in the PRM Administrative Budget and approved by the
whole Board on March 12. Due to Mr. Furry's announced retirement, which
was later rescinded, the salary increase was not implemented. Staff received
a 4% non - recurring bonus. Mr. Furry advised his preference to also receive a
6/18/10
Page 3
non - recurring bonus in lieu of an increase. Due to entities experiencing
funding hardships, Mr. Boyle objected to any increase. The Chairperson
stated he respectfully disagreed and restated the value of Mr. Furry to the
pool. Mr. Ben -Asher made a motion to approve a 5% non - recurring bonus for
the Executive Director. Vivian Hunter seconded the motion, and it was
approved by majority vote.
9. Election of Officers — Elections for a 2 -year term were held for Chairperson,
Treasurer, and two Representatives.
Chairperson — John Litton expressed interest in continuing to serve as
Chairperson. No nominations were received from the floor. J. P. Murphy
made a motion to re -elect Mr. Litton as Chairperson. Mr. Boyle seconded the
motion, and it was unanimously approved. Mr. Litton was re- elected
Chairperson for the 2 -year term, commencing 10 -1 -10.
Treasurer — Mike Sheppard expressed interest in continuing to serve as
Treasurer. No nominations were received from the floor. Mr. Boyle made a
motion to re -elect Mr. Sheppard as Treasurer. Mr. Wickstrom seconded the
motion, and it was unanimously approved. Mr. Sheppard was re- elected
Treasurer for the 2 -year term, commending 10 -1 -10.
Representative — Frank Gilbert expressed interest in continuing to serve as
Representative. No nominations were received from the floor. Mr. Wickstrom
made a motion to re -elect Mr. Gilbert as Representative. Connie Collins
seconded the motion, and it was unanimously approved. Mr. Gilbert was re-
elected Representative for the 2 -year term, commencing 10 -1 -10.
Representative — Lester Baird indicated interest in serving as Representative.
No other nominations were received from the floor. Mr. Byrd made a motion
to elect Mr. Baird as Representative. David Davis seconded the motion, and
it was unanimously approved. Mr. Baird was re- elected Representative for
the 2 -year term, commencing 10 -1 -10.
10. Legal Counsel
A. Legislative Updates — A summary of legislative updates was reviewed
by Mr. Roper during a session of the PRM Conference on Thursday.
11. Board Member Items
There were no Board Member items.
6/18/10 Page4
There was no public comment.
Meeting adjourned at 10:40 a.m.
Respectfully submitted,
Judith A. Hearn
Assistant Executive Director
Secretary to PRM Board
O: \Judy \BD MTGS \Board of Directors Meeting 6 -18 -10
6/18/10
Page 5
Oviedo, City of
Pahokee, City of
Port of Palm Beach
Port Richey, City of
Punta Gorda, City of
Safety Harbor, City of
Sarasota/Manatee Airport Authority
Seacoast Utility Authority
Sebring, City of
South Florida Conservancy
South Pasadena, City of
St. Pete Beach, City of
Sun n' Lake of Sebring
Tavares, City of
Temple Terrace, City of
Wauchula, City of
Winter Garden, City of
Zephyrhills, City of
Connie Collins
Derrek Moore
Paul Zielinski (contact)
P m Zeigler
P
WiEkstrom
Hope Dexter (contact)
David Davis
James Graham
Ellen Posivach
David Drury
Alan Zimmet
John Schussler
Mike Eastman
Elsie King
Ileana Ma Inez
Crissy Bublitz
Frank Gilbert
Karina Bouthot
Terri Svendsen
P gy Ca}penter
I/
Ri Moore
Indian Rocks Beach, City of
Kenneth City, Town of
Key Colony Beach, City of
LaBelle, City of
Lady Lake, Town of
Lake Mary, City of
Lake Placid, Town of
Lake Wales, City of
Lantana, Town of
Levy County BOCC
Longboat Key, Town of
Longwood, City of
Maitland, City of
Moore Haven, City of
New Port Richey, City of
North Port, City of
Okeechobee, City of
Okeechobee County BOCC
Sandy Sanders
Susan Scrogham
Vickie Bollinger (contact)
M'. ael Boyle
Arlene Tuck
Sandra Davis
Tia Marie Kitchen (contact)
Fred Moo
erald Wilson
Chuck Coward
Thomas Goldberg
Phil Williams
rl. +
l ''�
-\
elin Martin
Thomas Kelley
eresa Walker
M
ne Brantl
Stev- Gailbreath
f
• - •n Allison,.
obbie Chartier
Sharon Anselmo
Melissa Arnold
Thomas O'Neill
Sherry Borgsdorf
Clayton Williams
Lyndon Bonner
JUNE 18, 2010 @ 10:00 A.M.
[Std Member — Non- Voting]
Avon Park, City of
Barron Water Control District
Belleair, Town of
Belle Glade, City of
Brooksville, City of
Clewiston, City of
Crystal River,- City-of
DeSoto County BOCC
Eustis, City of
Florida City, City of
Fort Meade, City of
Glades County BOCC
Gulf County BOCC
Gulfport, City of
Hardee County BOCC
Hendry County BOCC
Holmes County BOCC
PUBLIC RISK MANAGEMENT OF FLORIDA
BOARD OF DIRECTORS MEETING
MARCO ISLAND, FLORIDA
Renee Green
June Shivers
Steve Ba
Ted Byrd
Deanna Row
11
Mike Sheppard
ark Ben -Asher
Laurie Lindsey
Linda S son
Paul Erickson
Ann Isaacs
Phyllis Kirk Dee a Ware
Robert Giesler
Monty Merchant
Mary n Dotson
Don Butler
Dan Carpenter
Danny Weeks
Karson Turner
Sherry Fitzpatrick
GUESTS / ADDITIONAL ATTENDEE
SIGN IN SHEET
Name
C �, �,-/ 7.1 ,
�'+rt ( \oYr 5
(1 onafr,
JUNE 18, 2010
Entity / Company
Signature
(-!/6
676
2. TREASURER'S REPORT
AS OF 12/31/10
PUBLIC RISK MGMT OF FL
BALANCE SHEET
DECEMBER 31, 2010
CURRENT ASSETS
PETTY CASH $ 75.00
OPERATING - BB & T 52,281,102.67
A/R MEMBERSHIPS 1,347,671.25
A/R - PRM GR HLTH 518,213.22
AIR CONSULTANT FEE- MEMBERS (8,616.68)
A/R- REINSURANCE RECOVERIES (12,468,269.64)
AIR OTHER (53.25)
A/R -STATE W/C ASSESSMENT 13,206.42
DUE FROM MEMBERS 1,750,000.00
STATE ADMIN. FUND 1,969.24
TOTAL CURRENT ASSETS 43,435,298.23
PROPERTY AND EQUIPMENT
FURNITURE & FIXTURES 33,422.72
LESS: ACCUM. DEPRECIATION (32,649.79)
OFFICE MACHINES & EQUIPMENT 85,366.44
LESS: ACCUM. DEPRECIATION (44,881.02)
AUTOMOBILE 165,953.90
ACCUMULATED DEPRECIATION (51,547.93)
TOTAL PROPERTY & EQUIPMENT 155,664.32
OTHER ASSETS
PREPAID INSURANCE 7,829,710.86
DEFER MEMBER CONTR - 1987 -89 183,808.00
DEFER MEMBER CONTR- 1989 -90 295,679.00
DEPOSITS 5,665.06
TOTAL OTHER ASSETS 8,314,862.92
TOTAL ASSETS
$ 51,905,825.47
LIABILITIES
ACCOUNTS PAYABLE $ (100,595.63)
A/P - GALLAGHER/RISX -FACS (1,541,399.11)
A/P EMP LIFE INS 114.45
ACCRUED VACATION 41,121.55
DEFERRED REVENUE 7,318,510.92
ADVANCE FROM REINSURER 7,111,805.45
CLAIMS PAYABLE - 1987 -89 (587,191.77)
CLAIMS PAYABLE - 1990 -91 (62,144.75)
CLAIMS PAYABLE - 1991 -92 (7,624.14)
CLAIMS PAYABLE - 1992 -93 57,553.08
CLAIMS PAYABLE - 1993 -94 33,171.44
CLAIMS PAYABLE - 1994 -95 17,741.49
CLAIMS PAYABLE - 1996/97 (45,239.16)
CLAIMS PAYABLE - 1997/98 (1,767,568.36)
CLAIMS PAYABLE - 1998/99 (173,055.35)
CLAIMS PAYABLE - 1999/00 (400,942.27)
CLAIMS PAYABLE - 2000/01 (525,908.88)
CLAIMS PAYABLE - 2001/02 (662,603.18)
CLAIMS PAYABLE - 2002/03 (102,162.45)
CLAIMS PAYABLE - 2003/04 (2,237,268.95)
CLAIMS PAYABLE - 2004/05 337,543.09
CLAIMS PAYABLE - 2005/06 (3,788,553.77)
CLAIMS PAYABLE - 2006/08 25,157,736.62
CLAIMS PAYABLE - 2008/09 1,653,569.29
CLAIMS PAYABLE - 2009/10 (3,886,417.54)
CLAIMS PAYABLE - 2011/12 (2,661,847.36)
NONCURRENT CLAIMS PAYABLE (15,780,164.31)
SUSPENSE - CLEARING ACCOUNT 14,495,419.00
TOTAL LIABILITIES 21,893,599.40
CAPITAL
FUND BALANCE
REVENUE IN EXCESS OF EXPENSE
32,037,079.71
(2,024,853.64)
PUBLIC RISK MGMT OF FL
BALANCE SHEET
DECEMBER 31, 2010
TOTAL CAPITAL 30,012,226.07
TOTAL LIABILITIES & CAPITAL
$ 51,905,825.47
REVENUES
MEMBERSHIP ASSESSMENTS
INTEREST INCOME
TOTAL REVENUES
PUBLIC RISK MGMT OF FL
INCOME STATEMENT
FOR THE THREE MONTHS ENDING DECEMBER 31, 2010
CURRENT MONTH
$ 2,664,908.16
10,957.86
2,675,866.02
EXPENSES
OFFICERS' SALARIES 14,090.60
OFFICE SALARIES 49,143.95
PAYROLL TAXES 3,507.73
EMPLOYEE RETIREMENT BENEFITS 6,109.60
HEALTH INSURANCE- OFFICER 1,952.89
HEALTH INSURANCE- OFFICE 11,670.50
LIFE INSURANCE- OFFICER 85.26
LIFE INSURANCE - OFFICE 148.91
LTD INSURANCE 1,293.36
LEGAL FEES 1,505.70
AUDIT FEES 12,200.00
APPRAISAL FEE EXPENSE 1,500.00
AUTO EXPENSE 158.91
TRAVEL EXPENSE 1,873.37
ASSOCIATION MEMBERSHIPS 385.00
DUES & SUBSCRIPTIONS 150.00
EDUCATION/TRAINING /CONFER. 0.00
OFFICE LEASE 6,764.56
JANITORIAL / CLEANING 280.00
OFFICE /COMPUTER EQUIPMENT 3,203.39
TELEPHONE 1,333.41
COPY MACHINE LEASE 203.00
OFFICE SUPPLIES 1,113.99
POSTAGE 400.42
LOSS PREV EQUIP & SUPPLIES 170.84
MARKETING & PROMOTION 0.00
MEETING EXPENSE 0.00
MISCELLANEOUS EXPENSE 3,415.03
TOTAL EXPENSES 122,660.42
REVENUE IN EXCESS OF EXPENSE $ 2,553,205.60
YEAR TO DATE
3,531,665.71
33,274.20
3,564,939.91
36,635.56
127,774.27
10,114.14
13,581.72
5,858.67
35,120.26
255.78
452.05
3,880.08
4,868.50
12,200.00
3,000.00
446.93
9,449.13
680.00
741.00
499.15
20,293.68
630.00
12,858.18
4,004.34
609.00
2,722.35
2,727.31
959.23
325.40
814.60
7,144.51
318,645.84
3,246,294.07
STAFFING
PUBLIC RISK MGMT OF FL
EXPENSES TO BUDGET
04/01/10 - 03/31/11
FOR THE NINE MONTHS ENDING DECEMBER 31, 2010
MONTHLY MONTHLY Y -T -D Y -T -D TOTAL YEAR % of YTD
ACTUAL BUDGET ACTUAL BUDGET BUDGET ACTUAL
SALARY RELATED EXPENSES
OFFICER'S' SALARIES 14,090.60 12,822.42 117,233.78 115,401.75 153,869.00
OFFICE SALARIES 49,143.95 44,295.17 403,766.81 398,656.50 531,542.00
PAYRLL TAXES 3,507.73 4,369.50 37,284.21 39,325.50 52,434.00
EMPLOYEE RETIREMENT BENEFIT 6,109.60 6,053.33 54,964.13 54,480.00 72,640.00
HELATH INSURANCE- OFFICER 1,952.89 1,695.50 16,031.49 15,259.50 20,346.00
HEALTH INSURANCE- OFFICE 11,670.50 10,264.00 96,178.24 92,376.00 123,168.00
LIFE INSURANCE- OFFICER 85.26 89.33 767.34 804.00 1,072.00
LIFE INSURANCE- OFFICE 148.91 145.33 1,353.85 1,308.00 1,744.00
LTD INSURANCE 1,293.36 1,371.25 11,640.24 12,341.25 16,455.00
TOTAL SALARY RELATED EXPENSE 88,002.80 81,105.83 739,220.09 729,952.50 973,270.00
76.19%
75.96%
71.11%
75.67%
78.79%
78.09%
71.58%
77.63%
70.74%
75.95%
GENERAL EXPENSES
LEGAL FEES 1,505.70 1,250.00 15,336.98 11,250.00 15,000.00 102.25%
LEGAL -PRE DEFENSE 0.00 416.67 0.00 3,750.00 5,000.00 0.00%
AUDIT FEES 12,200.00 2,583.33 12,200.00 23,250.00 31,000.00 39.35%
ACTUARIAL STUDY 0.00 2,250.00 10,352.31 20,250.00 27,000.00 38.34%
APPRAISAL FEE EXPENSE 1,500.00 481.25 6,000.00 4,331.25 5,775.00 103.90%
AUTO EXPENSE 158.91 400.00 4,207.99 3,600.00 4,800.00 87.67%
TRAVEL- EXPENSE 1,873.37 2,250.00 30,255.24 20,250.00 27,000.00 112.06%
ASSOCIATION MEMBERSHIPS 385.00 166.67 680.00 1,500.00 2,000.00 34.00%
DUES & SUBSCRIPTIONS 150.00 240.00 1,196.00 2,160.00 2,880.00 41.53%
EDUCATION/TRAINING /CONFER 0.00 2,250.00 6,968.85 20,250.00 27,000.00 25.81%
OFFICE LEASE 6,764.56 6,890.67 59,895.89 62,016.00 82,688.00 72.44%
JANITORIAL/CLEANING 280.00 346.67 2,450.00 3,120.00 4,160.00 58.89%
OFFICECOMPUTER EQUIPMENT 3,203.39 1,350.00 38,775.94 12,150.00 16,200.00 239.36%
TELEPHONE 1,333.41 1,950.00 14,883.99 17,550.00 23,400.00 63.61%
COPY MACHINE LEASE 203.00 225.00 1,827.00 2,025.00 2,700.00 67.67%
REPAIRS & MAINT. - EQUIPMENT 0.00 150.00 587.20 1,350.00 1,800.00 32.62%
OFFICE SUPPLIES 1,113.99 1,050.00 9,673.97 9,450.00 12,600.00 76.78%
NEWSLETTER 0.00 333.33 832.50 3,000.00 4,000.00 20.81%
POSTAGE 400.42 975.00 7,346.51 8,775.00 11,700.00 62.79%
PRINTING 0.00 166.67 3,573.18 1,500.00 2,000.00 178.66%
INSURANCE 0.00 0.00 0.00 0.00 0.00 0.00%
LOSS PREV EQUIP & SUPPLIES 170.84 1,650.00 9,122.62 14,850.00 19,800.00 46.07%
MARKETING & PROMOTION 0.00 337.50 1,216.97 3,037.50 4,050.00 30.05%
MEETING EXPENSE 0.00 1,807.50 5,581.27 16,267.50 21,690.00 25.73%
MISCELLANEOUS EXPENSE 3,415.03 187.50 8,760.19 1,687.50 2,250.00 389.34%
CONFERENCE MEMBER ROOM EXI 0.00 631.33 7,006.00 5,682.00 7,576.00 92.48%
TRAINING /SEMINAR PRESENTATIOI 0.00 300.00 1,227.60 2,700.00 3,600.00 34.10%
WEB SITE MAINT 0.00 360.00 0.00 3,240.00 4,320.00 0.00%
INSURANCE CONSULTANT 0.00 0.00 18,166.67 0.00 0.00
TOTAL GENERAL EXPENSES 34,657.62 30,999.08 278,124.87 278,991.75 371,989.00 74.77%
TOTAL OPERATING EXPENSES 122,660.42 112,104.92 1,017,344.96 1,008,944.25 1,345,259.00 75.62%
r..
PUBLIC RISK MANAGEMENT OF FLORIDA
BOARD OF DIRECTORS MEETING
MARCH 9, 2011
REGULAR AGENDA SUMMARY
3. Executive Director's Report
Ross Furry, Executive Director
A. Request Board Approval of 10/1/2011 -12 Administrative Budget
The proposed Administrative Budget for the period 10/1/2011 through 9/30/2012 totals
$1,116,332 which is a 10% decrease from the prior year's Administrative Budget of
$1,244,192.
Total Personnel Budget is $967,231, a 1% decrease from prior year, and does not include the
one -time 4% bonus given to each employee last year or any increase this year.
If the membership would consider a 5% increase, based on performance, the all inclusive
total cost for all employees would be $38,996 for the year.
Total Operating Expense remains flat at $371,846.
Reserves for Computer and Auto Replacement remain flat at $45,000.
The Group Health Administrative share of personnel and operating expenses has been
increased from $146,785 to $267,745, or 82.4% due to the addition of an administrative
position dedicated to GHT and the growth of this pool to forty (40) members. These
expenses are calculated at 36% of applicable personnel costs and 20% of operating
expenses and account for the overall 10% reduction to the P &C Administrative Budget.
Attached: Proposed P &C Administrative Budget for FY 2011 -12
Proposed GHT Administrative Budget for FY 2011 -12
Board Action:
Approved
Denied
Deferred
Other
L_"
2/16/2011
STAFFING
Officer Salary
Officer Bonus
Office Salary
Office Bonus
Payroll Taxes
Florida Retirement
Health Ins. - Officer -
Health Ins. - Office -
Life Ins. - Officer
Life Ins. - Office
Long Term Disability
Total Personnel Budget
C1
Public Risk Management
Of Florida
Property / Casualty
Proposed Administrative Budget
FY 10/01/2011 - 09/30/2012
4/1-3/31 4/1-3/31 4/1-3/31 4/1-3/31 10/01 -9/30
2009/2010 2009/2010 2010/2011 2010/2011 2011/12 % Change
Budget Actual Budget @12/31/10 Proposed
Budget
146,542 146,651 146,651 111,739 146,651 0%
0 0 7,327 5,495
511,098 511,684 511,684 398,650 511,098. 0%
0 0 20,467 5,117
50,309 49,372 52,434 37,284 50,309 -4%
68,874 66,624 72,640 50,564 74,990 3%
19,588 19,589 20,346 16,031 23,435 15%
121,382 117,309 123,168 96,178 141,528 15%
1,021 1,037 1,072 767 1,021 -5%
1,744 2,012 1,744 1,354 1,744 0%
14,310 14,354 16,455 11,640 16,455, . 0%
934,868 928,631 973,988 734,820 967,231 -1%
OPERATING EXPENSE
Legal Fees 15,000 23,060 15,000 15,337 15,000 0%
Pre - defense Legal 5,000 155 5,000 0 5,000 0°%
Audit Fees 31,000 29,000 31,000 12,200 31,000 0%
Actuarial Study 30,000 27,667 27,000 10,352 30,000 11%
Appraisal Expense 5,775 4,500 5,775 6,000 6,500 13%
Auto Expense 4,800 7,000 4,800 4,208 3,000 -38%
Travel Expense 30,000 45,749 27,000 30,255 27,000 0%
Association memberships 2,000 957 2,000 680 2,000 0%
Dues /Subscriptions 3,200 2,112 2,880 1,196 2,500 -13%
Education /Training /Confer. 30,000 13,739 27,000 6,969 27,000 0%
Office Lease 80,280 77,854 82,688 59,896 83,610 1%
Janitorial / Cleaning 4,160 3,640 4,160 2,450 4,160 0%
Office/Computer Equipment 18,000 36,662 16,200 38,776 16,200 0%
Telephone 26,000 19,685 23,400 14,884 23,400 0%
Copy Machine Lease 3,000 2,436 2,700 1,827 2,700 0%
Repairs /Maint.- Equipment 2,000 0 1,800 587 1,800 0%
Office Expense 14,000 16,161 12,600 9,674 12,600 0%
Newsletter 4,000 3,330 4,000 833 4,000 0%
Postage 13,000 5,208 11,700 7,347 11,700 0°%
Printing 2,000 3,158 2,000 3,573 2,000 0%
Insurance- General 3,000 2,403 0 0 0 0%
Loss Prevention Expense 22,000 21,483 19,800 9,123 15,000 -24%
Marketing & promotion 4,500 4,441 4,050 1,217 4,050 0%
Meeting Expense 24,100 16,954 21,690 5,581 20,500 -5%
Miscellaneous Expense 2,500 4,314 2,250 7,600 2,250 0%
Office-Site Storage 0 0 0 0 4,800 100%
Conference Member Room Expense 7,576 6,837 7,576 7,006 7,576 0%
Training /Seminar Presentation 4,000 0 3,600 1,228 2,500 -31%
Web Site Maintenance 4,800 4,800 4,320 4,800 4,000 -7%
Non - Budget -Board Approval 0 0 0 0 0 0°%
Total Operating Expense 395,691 383,306 371,989 263,598 371,846 0%
Total Admin. Budget
1,330,559 1,311,938 1,345,977 998,418 1,339,077 -1%
Computer Replacement Reserve 15,000 7,500 15,000 5,625 15,000
Auto Replacement Reserve 30.000 15,000 30.000 22.500 30.000
Admin Budget with Reserves 1,375,559 1,334,438 1,390,977 1,026,543 1,384,077 -1%
Group Health Admin. Transfer - 147,408 - 147408 - 146,785 - 110,088 - 267,745
Admin Budget with Gr. Hlth. Credit 1,228,151 1,187,030 1,244,192 916,455 1,116,332 -10%
Insurance Consultant 218,000 218,000 0 18,167 0
Adman Budget with Ins. Consultant 1,446,151 1,405,030 1,244,192 934,622 1,116,332 -10%
10/01 -09/30
2010/11 Budget Expenses
Legal Fees 15,000
Anticipated need for legal advice - public meetings, by -laws
Sunshine Lam - Includes retajner for legal council
Pre - defense - Legal 5,000
Member usage & retainer fee for A.N.B.
Audit Fees 31,000
Yearly CPA audit & related legal & printing expenses
Acturlal Study 30,000
Yearly actuarial study & report
Increase
Appraisal Expense 6,500
Software & related updates for members
Increase
Auto Expense 3,000
General maintenance & repairs - Oil changes,
Tune -ups, Tires & Car wash, AAA Coverage.
Decrease
Travel Expense 27,000
Gas, Lodging, Meals, Air fare
Approx. 25% Exec. Dir., 60% Loss Prev.,15% Claims
Association Memberships 2,000
Annual Renewals - Includes professional dues /memberships
Dues / Subscriptions 2,500
Annual Renewals - Includes office & trade publications
Allows for subscriptions to selected local
newspapers of members.
Decrease
Education / Training / Conference 27,000
National PRIMA - (2) - $6,000 State PRIMA - (4) - $2,000
PRIMA -Pool Trustees - (7) - $11,000 AGRIP -Pool Admin. - (1) - $2,000
Amer. Soc. of Safety Engineers - (2) - $4,000 FPPA - $2,000
Office Lease
Increase per lease agreement percentage
Janitorial / Cleaning
Weekly cleaning service, pest control & carpet shampoo
Office / Computer Equipment
Software, Comcast Internet connection
Web Site Design, System maintenance.
Electric
Office electricity expense
Combined with rent expense
Water / Trash
City water, sewer & trash collection
Combined with rent expense
83,610
4,160
16,200
0
0
•
Telephone
Phone system hardware rental, Cell phones,
Local service & ISDN & Long Distance service with incoming
Toil -free (800) service
23,400
Copy Machine Lease & Supplies 2,700
Repairs /Maint. - Equipment 1,800
Computer & related equipment repair + misc. "handy -man"
office repairs
Office Expense
General office supplies, binders, paper products,etc.
Newsletter
Quarterly newsletter for members, associates & prospects
Postage
Pitney Bowes rental, postage, FedEx, etc.
Printing
Invoices, letter head, envelopes, etc.
Insurance -Flood /General
Office flood, travel, liability, etc.
No longer Necessary
Loss Prevention Expense
Training videos & testing equipment
Computer Projection Equipment
Loss Prevention Programs
Decrease
12,600
4,000
11,700
2,000
0
15,000
Marketing & Promotion 4,050
Member retention /Prospect Expenses
Annual Conference promotional items
Meeting Expense 20,500
4 - Quarterly Board Meetings -Room, equip., breakfast
and luncheon for all members - $7,400
4 - Executive Committee Meetings- Meeting room & refreshment - $2,200
3 - Committee Meetings- Meeting room & refreshment - $1500
1 - Underwriters Meeting - $13,000
Decrease
Miscellaneous Expense 2,250
Incidental expense & fees
Training/Seminar Presentation 2,500
Sexual Harassment, Claims Training, Legal Seminars, etc.
Decrease
Web Site Maintenance 4,000
Annual AGOS contract for web site hosting
Conference- Member Room Expense 7,576
1 night room expense for PRM Conference
Off-site Storage 4,800
Document storage off premisis
New Item
Total Operating Expense: 371,846
p:
1/28/2011
Page 2
Auto Replacement Reserve
Four Vehicles @ $7,500
Computer Replacement Reserve
Total Replacement Expense:
Officer Salary
Salary to remain the same
Office Salary
Salaries to remain the same
Payroll Taxes
Applicable percentage based on saleries
Employee Retirement
Applicable percentage based on saleries
Officer Health Insurance
Applicable Coverages
Office Health Insurance
Applicable Coverages
Officer Life Insurance
Applicable rate based on two times salary
Office Life Insurance
Applicable rate based on one times salary
Long Term Disability
Applicable rates based on age & salary
Total Salary Compensation:
Total Expense with Reserves:
30,000
15,000
45.000
146,651
511,098
50,309
74,990
23,435
141,528
1,021
1 ,744
16,455
967.231
1.384.077
1/28/2011
Page 3
OPERATING EXPENSE
Legal fees
Audit fees
Actuarial Study
Members' Supplies & Misc.
Trustee E & 0 Insurance
Total Health Operating Cost
Health Transfer Cost:
Personnel
General Expense
Total Health Transfer Cost
Total Admin. Budget
Public Risk Management
Of Florida
Group Health Trust
Final Administrative Budget
FY 2011 - 2012
2009/10 2009/10
Budget Actual
6,000
18,000
3,500
3,000
10,000
40,500
0
16,000
2,800
0
0
18,800
112,602 112,602
34,805 34,805
147,096 147,096
187,596 165,896
2010/11 2010/11 2011 /12
Budget Actual Proposed
Budget
6,000
18,000
3,500
3,000
10,000
40,500
112,602
34,805
0 16,000
0 18,000
0 4,000
0 3,000
0 5,000
0 46,000
84,452
26,104
216,351
51,394
146,785 146,785_, 267,745
187,285 146,785 , 313,745
Transfer to be calculated at 36% of applicable salary and 20% of applicable operating expenses.
Salaries /Benefits
200,102 Exec. Director
134,406 Asst. Exec Director
111,463 Accountant -HO
80,005 Admin. Asst.
75 000 New Hire
600,976
36%
216,351 Personel Transfer
Operating:
3,000
27,000
2,000
2,500
27,000
83,610
4,160
16,200
23,400
2,700
1,800
12,600
11,700
2,000
4,050
20,500
2,250
4,000
2,500
4.000
256,970
20%
51,394
Auto Expense
Travel Expense
Assoc Memberships
Dues /Subscriptions
Educ/Train/Conf
Office Lease
Janitorial /Cleaning
Office /Computer Equipment
Telephone
Copy Machine Lease
Repairs /Maint- Equipment
Office Expense
Postage
Printing
Marketing & promotion
Meeting Expense
Misc. Exp.
Newsletter
Training /Seminar Presentation
Web Site Maintenance
267,745 = 2011/12 Transfer
22,312 = Monthly Transfer
2/16/2011
PUBLIC RISK MANAGEMENT OF FLORIDA
BOARD OF DIRECTORS MEETING
MARCH 9, 2011
REGULAR AGENDA SUMMARY
Executive Director's Report continued
B. Request Board Approval to Utilize Surplus to Reduce Member Premiums
In past years PRM has utilized the surplus of the Pool to effectively lower members' costs.
For example, in 1999 $500,000 was provided as a participation credit. In 2002 a million
dollars was restricted from surplus in order to take advantage of minimum /maximum Loss
Fund required by reinsurers. In 2006 $2,000,000 was paid from surplus to reduce the cost of
property premiums. Additionally in 2006, $2,250,000 was restricted from surplus in
replacement of purchasing aggregate excess reinsurance. In 2009 the Board approved the
use of surplus to fund the Administrative Budget, the extension of property coverage from
April 2010 through June 2010 and a Toss fund credit for a total of $4,598,478.
Last year the membership approved the recommendation for $4,000,000 from surplus to
provide participation credits to reduce each member's loss fund cost. For the 4/1/2010 to
3/31/2011 renewal and the extension of the program to 9/30/2011, PRM utilized $3,718,202
from surplus for participation credits of the $4,000,000 authorized.
While we are in the early stages of submissions to carriers and rate negotiations, we need to
set a "not to exceed" dollar amount for participation credit in order to conclude the renewal
and prepare individual member premiums. As last year, the Executive Board approves the
final dollar amount of the participation credit in total within the "not to exceed" amount
approved by the general membership.
PRM, as of 9/30/10, has $3,992,493 in Designated Member Equity and $22,395,931 in
Unrestricted Undesignated Member Equity (surplus).
It is recommended that $4,000,000 of surplus be set as a "not to exceed" amount to be
utilized as participation credits for members 10/1/2011 renewal.
Board Action:
Approved
Denied
Deferred
Other
PUBLIC RISK MANAGEMENT OF FLORIDA
BOARD OF DIRECTORS MEETING
MARCH 9, 2011
REGULAR AGENDA SUMMARY
Executive Director's Report continued
C. Referral Campaign Discussion & Approval — See attachment.
Board Action:
Approved
Denied
Deferred
Other
D. 2011 Meeting Dates — Information Only, No Action Needed
The following meeting dates and locations have been scheduled for 2011:
Executive Board
Tuesday, April 26 — Hampton Inn, Lakeland, 9:00 a.m.
Wednesday, November 2 — Terrace Hotel, Lakeland, 8:30 a.m.
Board of Directors
Friday, June 17 — Hilton Beach Resort, Marco Island, 9:00 a.m.
Wednesday, November 2 — Terrace Hotel, Lakeland, 10:00 a.m.
E. Telephonic Claims Reporting — Information Only, No Action Needed
By utilizing the telephonic claims reporting service, a claim is immediately entered into the
Gallagher Bassett system and assigned a claim number. A copy of the telephonic report is
promptly emailed to the entity's contact person. At their January 11th meeting, the Executive
Board approved making telephonic claims reporting mandatory, beginning July 1, 2011.
3.C. REFERRAL PROGRAM
Public Risk Management of Florida
Referral Program
Overview
Introduction & Purpose
In an effort to provide PRM an opportunity for healthy growth in the coming years, we must exhaust all
avenues of marketing. In our opinion, the best marketing strategy to generate interest in the PRM
program is through a referral of prospects from existing PRM members. This can best be achieved by
providing an incentive for the existing membership to provide referrals.
Proposed Referral Program
The proposed referral program provides an incentive that will help the member entity by providing real
dollar savings on their insurance costs. This is outlined below:
• A Member Entity that refers a prospect public entity, which eventually joins PRM as a new
member in 2011, shall receive a discount on their premium from PRM.
• The Discount will be equal to 1.5% of that new Member's 2011 premium, based on the final
proposal that is bound by new Member.
• The Discount will be applied to the final bound premium of the Referring Member Entity's policy
effective 10/1/2011. This will be capped at a maximum of 10% of the Referring Member's
premium.
• The Discount will only be offered as a one -time incentive on policy effective 10/1/2011. This is
not a recurring incentive program and is available for 2011 only.
Example: Current PRM Member, City of ABC, refers County of ABC as a PRM prospective member.
County of ABC joins PRM as a new member effective 10/1/2011 for a total premium of $1,000,000. City
of ABC receives $15,000 ($1,000,000 x 1.5% = $15,000) as a discount on its premium. The final bound
premium of City of ABC was originally $200,000. After the discount is applied, the total costs actually
paid are $185,000. This example results in a 7.5% savings.
Cost Contribution
WRM is willing and agreeable to assist PRM in administering this referral program. If PRM offers this
referral incentive to existing members, WRM will reduce its brokerage fee charged to PRM, equal to the
costs associated with the incentive savings given by PRM.
PUBLIC RISK MANAGEMENT OF FLORIDA
BOARD OF DIRECTORS MEETING
MARCH 9, 2011
REGULAR AGENDA SUMMARY
Executive Director's Report continued
F. Member On -Line Access to Risx Facs - No Action Needed
For several years PRM administration has requested that Gallagher Bassett, our third party
administrator, provide individual member on -line access to www.risxfacs.com. Recently
through the efforts of Andy Cooper, Gallagher Bassett has agreed to provide one
risxfacs.com user access per member at no additional charge. If a member has need for an
additional user, then Gallagher Bassett will provide at a cost of $500 per user.
The PRM administration will be providing additional information for the set up and training for
those members who would like access to their claims via www.risxfacs.com.
G. 2011 Educational Conference — Information Only, No Action Needed
The PRM Educational Conference will be held June 15 -17 at the Hilton Beach Resort on
Marco Island at a room rate of $133 /night. The Executive Board approved the use of surplus
funds for one night's room accommodation for each Preferred Board Member and Alternate
of the P &C Pool. Total estimated cost for 96 Preferred Board Members and Alternates is
$12,768. Last year the actual cost was $7,224 for 56 attendees.
The Group Health Trust Board of Directors also approved to pay for one night's
accommodation for each GHT Board Member and Alternate. If a Member represents both
Boards and wants to utilize both nights, they may do so.
4. Broker's Report
PUBLIC RISK MANAGEMENT OF FLORIDA
BOARD OF DIRECTORS MEETING
MARCH 9, 2011
REGULAR AGENDA SUMMARY
Hasib Bangloria, Ballator Insurance Group
Andy Cooper, World Risk Management
A. 10/1 Effective Date Revision & Extension Update - Attachments
B. PRM Property Extension Program Overview — Information will be presented at the meeting.
C. PRM Financial Overview — Final Assessment of Financial Impact of 10/1 Change —
Information will be presented at the meeting.
D. Property & Casualty Renewal 2011 — Status, Update, Overview — Information will be
presented at the meeting.
1. Renewal Timeline
2. Critical Bind Dates for Property and all other lines
3. Excess Placement Marketing Plan — Attachment
E. Enhancements: Items to be Considered for upcoming Renewal — Information will be
presented at the meeting.
1. 2 Year Program Offering
2. Deductible Program Offering
F. WRM Broker Service Report & Member Visit Log — Broker Service Report attached; Member
Visit Log will be presented and discussed at the meeting.
G. WRM & Ballator Team Enhancements — Diagram attached.
4.A. 10/1 EFFECTIVE DATE REVISION
& EXTENSION UPDATE
PRM
EFFECTIVE DATE EXTENSION
4 -1 -2011 to 10 -1 -2011
Background:
At the June 18, 2010 PRM Board Meeting in Marco Island, the membership voted to pursue
returning to an October 1St effective date. It was the desire of many members to return to this
date due to budgeting each member must perform and to coincide with their fiscal year. The
vote did include the stipulation that the extension must be done at the same rates as PRM is
paying currently.
Status:
WRM has been working with all excess carriers and reinsurers to secure the extension. Thus,
the coverage period is being amended from 4/1/2010 — 4/1/2011 to 4/1/2010 to 10/1/2011.
Confirmation of extension at a flat rate has been received from all excess carriers extending
coverage from 4/1/11 to 6/1/11, with the exception of the excess property. (Please see
attached chart)
It is necessary for us to point out that the PRM Property program currently renews at 6/1/11
and we feel that it is prudent to leave it at that effective date. This will allow us to negotiate the
overall PRM property program renewal with the excess carriers outside of Hurricane Season. In
an effort to best manage the property placement, WRM pursued a 2 year plan for the excess
property, upon receiving approval to pursue by Executive Board at the August Board Meeting.
We have faced some challenges in accomplishing the 2 year plan as this is a new concept for
Lexington, the lead property carrier in the PRM program. We have received a lot of resistance
from senior management of Lexington in Boston. Currently, there is a prospect of initiating a
cancel /rewrite, however, this still needs to be discussed and vetted by the Executive Director,
Ross Furry. In fact, we are in the process of setting up a meeting for early November with the
senior management of Alliant and Lexington, including the President of Alliant and President of
Lexington Property.
This is for the excess property behind the PRM program only, and does not affect the member's
expiration date of 10/1/2011.
Financial Impact:
Overall, the financial impact to PRM has been positive. This is reflected in the total surplus
allocated for this extension to be less than $750,000, which is 25% of the totals for each of the
last 2 years. PRM will be advancing approximately $1,400,000 in excess premium on behalf of
the membership. This figure excludes the property. The property advance payment would
range from $2,500,000 to $3,000,000 based upon the structure put in place. These advances
will be received from the membership later in the policy year, as described below.
The payment of the 6 month extension premium by the membership to PRM will be split into 2
equal installments, one due at April 1, 2011 and the other at July 1, 2011.
Outstanding Items:
Approval from John Litton (Chairman), Ross Furry (Executive Director), and Don Roper (Counsel)
to proceed with the 6 month extension for the entire PRM membership. [Per Executive Board]
Approval from John Litton (Chairman), Ross Furry (Executive Director), and Don Roper (Counsel)
to proceed with the 6 month extension for all excess carriers, other than the excess property.
[Per Executive Board]
Agreement and Approval to reconvene in about 30 -45 days to review and finalize excess
property
*Once the above approvals are received, the following will be finalized:
• Membership to receive extension endorsements and invoice for 2 additional
installments
• WRM to work with non - property excess carriers to obtain appropriate endorsements or
addendums revising the excess expiration to date to October 1, 2011. Target date is
November 30 for all endorsements to be received.
• WRM to meet with each PRM member to review and discuss the change to October 1
• Continue to pursue the most optimal excess property program
PRM
EFFECTIVE DATE EXTENSION
4 -1 -2011 to 10 -1 -2011
Background:
At the June 18, 2010 PRM Board Meeting in Marco Island, the membership voted to pursue
returning to an October 1st effective date. It was the desire of many members to return to this
date due to budgeting each member must perform and to coincide with their fiscal year. The
vote did include the stipulation that the extension must be done at the same rates as PRM is
paying currently.
Status:
WRM has been working with all excess carriers and reinsurers to secure the extension. Thus,
the coverage period is being amended from 4/1/2010 — 4/1/2011 to add a 6 month term from
4/1/2011 to 10/1/2011. Confirmation of extension at a flat rate has been received from all
excess carriers extending coverage from 4/1/11 to 10/1/11, with the exception of the excess
property where WRM in conjunction with PRM is currently working on a viable long term
solution.
It is necessary for us to point out that the PRM Property program currently renews at 6/1/11
and we feel that it is prudent to leave it at that effective date. This is for the excess property
behind the PRM program only, and does not affect the member's expiration date of 10/1/2011.
Coverage is hereby extended for all PRM members with an expiration date of April 1, 2011 for
an additional 6 month period commencing April 1, 2011 to October 1, 2011. This will apply to all
lines of coverage purchased during the current annual period expiring April 1, 2011. The total
contribution owed for the additional 6 months will be calculated at a flat rate and is provided
on the declarations page.
Financial Impact:
The payment of the 6 month extension premium by the membership to PRM will be split into 2
equal installments, one due at April 1, 2011 and the other at July 1, 2011.
Enclosures & Documentation:
Included along with this memorandum is a declarations page providing confirmation of
coverage for the period April 1, 2011 through October 1, 2011. All coverage terms and
conditions will remain the same during this period as were afforded for the annual period of
April 1, 2010 to April 1, 2011.
Additionally, WRM will be providing the renewal application and submission information in the
next couple of weeks. This is in an effort to begin the excess renewal marketing and overall
PRM
EFFECTIVE DATE EXTENSION
4 -1 -2011 to 10 -1 -2011
renewal analysis early, allowing PRM to provide proposals for the October 2011 renewal in a
timely fashion for members' budgetary meetings and deadlines. Please have all applications
completed and returned to WRM, no later than January 5, 2011.
The WRM Staff will be contacting each member to schedule a visit over the next 45 — 60 days.
This will give each member the opportunity to discuss any questions they may have with
respects to the extension period, as well as receive any assistance they may need with respects
to the renewal application process.
More to Come:
Ross Furry (Executive Director) and PRM staff, in conjunction with WRM, are currently working
on alternate options and structures for the PRM membership to be made available for the
policy renewal in October 2011. Information on these enhancements will be made available
sometime during the first quarter of 2011.
Sincerely,
PRM Staff & WRM Team
RISK MANAGEMENT, LLC
PRM 6 Month Extension of Coverage
From 4.1.11 to 10.1.11
The following carriers have agreed to the 6 month extension:
Carrier
OneBeacon
Tower Insurance
Liberty Mutual
Chartis
Travelers
GB
Property
Coverage
Liability /Excess Liability
WC — Primary layer
WC — Excess Layer
Crime
Boiler & Machinery
TPA — Claims
Comments
Flat rate extension
Flat rate extension
Flat rate cancel & rewrite
Flat rate extension
Flat rate extension
Flat rate extension
Extension Obtained during November Meeting with Lexington Senior
Management. Details Provided Separately.
4.D.3. EXCESS PLACEMENT MARKETING PLAN
WRM
Public Risk Management Excess Renewal Marketing Plan
Excess Workers Compensation (Buffer Layer $800K XS $200K):
Tower Insurance Group / CastlePoint
Liberty Mutual
AmTrust Financial
NY Magic
Notes:
1. Only a handful of carriers are comfortable with a $100,000 attachment point.
2. Will pursue a 2 year program either in the form of a rate guarantee or 2 year policy.
Excess Workers Compensation (Statutory XS $1,000,000):
Liberty Mutual
Safety National
Midwest Employers
NY Magic
Arch
Ace
Tower Insurance Group / CastlePoint
AmTrust Financial
Notes:
1. We are in a 2 year plan with Liberty Mutual with a guaranteed rate.
2. Will pursue a 2 year plan similar to the current arrangement with Liberty.
3. NCCI Workers Comp rates in Florida are increasing by approximately 8% on January 1, 2011.
Property:
AL / GL / POL Package:
Lexington
Iron Shore
Ace Westchester
Lloyd's
AmRisc
Other A Rated E & S Carriers (i.e. OneBeacon, Liberty)
OneBeacon
Chartis (AIG)
ACE USA
Safety National
CV Starr
Munich Re
Brit
Markel Re
Travelers
Ironshore
CNA
Genesis Re
1525 International Parkway, Suite 2021 • Lake Mary, FL 32746 • Tel: 407 - 936 -2132 • Fax: 407 - 936 -2482 • www.npis.com
Notes:
1. PRM has changed the package liability carrier each of the last 2 years; Need to consider and determine
whether it would be beneficial for PRM to remain with OneBeacon for another term after evaluation and
review of the working relationship with OneBeacon.
2. We will pursue a 2 year program from all package liability carriers.
3. Tort Cap Limits Increase goes into effect July 1, 2011; May see pricing increase as a result.
Public Officials Liability (Stand Alone):
Tower /SUA
ACE USA
Arch
Scottsdale / Euclid
Aspen
Diamond State http : / /www.diamondstategroup.com /products /publicentity.aspx
Chartis (AIG)
Notes:
1. Last Year's Marketing efforts proved that a stand alone option is not the cost effective, however, we will
pursue these markets to determine if anything has changed.
2. Preference is to clearly keep the package liability carrier to include the professional for ease of claims
determination and reporting.
3. We will pursue a 2 year program on this as well.
4.F. WRM BROKER SERVICE REPORT
2010 QUARTERLY BROKER'S REPORT
Time Frame
$ervtCu
1st Quarter April 1-June 30
2nd Quarter July 1-Sept 30
Ongoing
WRM will develop, recommend, negotiate and place insurance
and /or risk financing programs for all coverage's listed in the
Coverage Document and /or Reinsurance Agreement.
N/A
July -mid-
November
Gather underwriting information via insurance applications
sent to members for completion.
N/A
N/A
Renewal applications were received, reviewed and
submitted to carriers for the 10/1/10 members
during this quarter. The team worked with carriers
and Ross to determine renewal pricing on all
October members. 4 out of 6 renewed their
coverages with PRM on October 1, 2010.
Exposure spreadsheets and Allocation
spreadsheet have been updated for the October
members and provided to PRM.
December
Exposure information complied into an Exposure Spreadsheet
for review by PRM. Information will be reviewed and discussed
with PRM.
Ongoing
Discuss with PRM necessary Coverage Enhancements.
Two Coverage Enhancements offered
to all members this renewal - Inverse
Condemnation & Non - monetary
Damages. Each member was required
to select or reject these coverages.
N/A
April
Applications requiring signature, will be signed by PRM.
All necessary documents /applications
that were required for the April 1st and
June 1st renewals were obtained (i.e.
Terrorism Rejection Forms)
N/A
Ongoing
WRM will administer PRM's relationship with all insurance
companies including, but not limited to, issues such as billings
in connection with selected programs, data reporting other
than claim data, and compliance with negotiated requirements.
WRM continues to be the liaison
between PRM and the
wholesalers /carriers. PRM recently
requested that Excess Property
Premiums be paid directly to the MGA
and WRM facilitated this request.
PRM has decided to change their Member
Renewal Date back to 10/1. WRM has negotiated
with the carriers to extend policy periods for all
coverages, except Property, from a 4/1/11
expiration to a 10/1/11 expiration to coincide with
the Member Renewal Date. Property policies will
remain on a 6/1 effective date. The extension was
bound on 10/1/10. Invoicing will be completed by
the 15th.
March -April
WRM will provide PRM with a Member Declarations Pages for
all coverage's listed within the Insurance Programs within thirty
(30) days of the beginning of the policy period; or in prompt
fashion if issued after the beginning of the policy period.
Member Declarations Pages were
provided to each member at the March
13, 2010 Board Meeting, along with
each members' proposal for coverage.
Now that the PRM program is being extended to
10/1/11, WRM will be preparing new Member Dec
Pages in the next quarter.
Ongoing
Certificates of Insurance will be issued at PRM or its
Member's request.
WRM continues to provide COI's to all
members on a timely basis. Patti
Dirmyer is the primary COI provider,
with Debbie Young being the backup.
We have received very positive
feedback from the members that their
COI requests are handled within 24
hours.
WRM continues to provide COI's to all members
on a timely basis. Patti Dirmyer is the primary COI
provider, with Debbie Young being the backup. We
have received very positive feedback from the
members that their COI requests are handled
within 24 hours. We recently completed Renewal
COI's for the 10/1/10 members.
7/1 all but
Excess
Property due
9/1
WRM will provide PRM with complete copies of excess or
reinsurance policies and endorsements within ninety (90) days
of the beginning of the Policy Period.
PRM was provided ALL 4/1/10 renewal
policies well before the 7/1 deadline.
Policies were provided on the following
dates: Aviation 5/25/10
One Beacon 5/25/10
Pollution 5/25/10
Boiler & Machinery 5/12/10
Crime 5/12/10
XS WC — Liberty 5/12/10
SUA WC 5/12/10
All 6/1/10 policies are being worked on
at this time and will be provided to PRM
before the 9/1 deadline.
N/A
July 1st
WRM will provide PRM with a Brokerage Report which will
include: a.
Complete list of insurance coverage in force; b. An
evaluation of overall program; c. A
summary of prior objectives and achievements; d. A
synopsis of financial funding aspects of the program; e. A
summary of claims administration/loss prevention
services provided; f.
Recommendations for modifications to Services provided; g. A
forecast of market conditions and renewal costs; h. A
detailed summary of fees and /or commission; and i.
Commentary in any other developments or issues important to
PRM
Items have been provided on the
following dates: a) 3/25/10; b) This is
done at every renewal; c) This is
handled in our Executive Summary for
each new period; d) N /A; e) N /A; f) N/A
; g) WRM provided a market conditions
update at the June 18, 2010 Board
Meeting; h) This was provided and
approved at the April 7, 2010 Executive
Board Meeting; i) Ongoing
N/A for the current program, but with the
extension, endorsements will be obtained during
the next quarter.
Page 1 of 6
2010 QUARTERLY BROKER'S REPORT
Time Frame
Servlcss
1st Quarter April 1-June 30
Ongoing
2nd Quarter July 1-Sept 30
Ongoing
Ongoing
WRM will maintain its records of PRM's Insurance Program in
accordance with WRM's record keeping requirements, Florida
Statutes and all other applicable legal requirements.
Monthly
WRM shall meet monthly or have monthly phone calls with
Executive Director and his /her team to discuss goals and
objectives, special needs and requirements, service related
issues, and technical topics, unless deferred by both
parties.WRM will also work closely with the Executive Director
of PRM and his/her team in reviewing topics, solving problems
and developing new ideas for the benefit of PRM and its
Members.
WRM continues to have weekly contact
with Ross Furry and various PRM staff
members on an ongoing basis. We
have not yet found a need for a monthly
meeting, but are always open to the
idea should this be required.
WRM team members continue to have weekly, and
at times daily, contact with the Executive Director
(ED). WRM team worked closely with the ED on
the 10/1 prospecting and member renewals.
Ongoing
WRM will meet with all PRM Members a minimum of twice
annually to enhance the service to PRM Members, unless
waived by the Executive Director of PRM.
AC and MJ have visited 17 members to
date. Other member visits will be
scheduled in the next month. We are
including the member log for your
review. Please note, Michele, Debbie &
Sonia have dates for member visits
schedule for over the next two weeks.
Member visits were completed during this quarter.
A updated Member Visit Log is attached. It should
be noted that each member will be visited again in
last quarter of 2010 to review the 10/1 extension
and renewal application.
Ongoing
WRM agrees to emphasize its efforts to retain any Member
that has issued it Notice of Intent to Withdraw.
N/A
N/A
Ongoing
With respects to claims administration services provided,
WRM offers no representation of warranty, either expressed
or implied, that as a result of such services PRM will receive
specific claim payment or monetary savings generally.
Nonetheless, WRM will monitor the service of the claims
administration services company to report any claims in
excess of $75,000.00, and such claims (and its status) shall
be reviewed by WRM and the Executive Director
Andy Cooper monitors the claim activity
for the Association on a regular basis.
However, we have never had
discussions or reviewed large claims
with PRM on a regular basis. We are
open to doing this on a quarterly basis if
PRM desires. Please let us know how
you would like to handle this in the
future.
Hasib and Andy contiue to monitor and analyze the
claims on an ongoing basis. This allows for proper
monitoring of the Loss Fund that has been
calculated against actual claims. This also allows
PRM and WRM to determine the sufficient SIR
levels of the program.
Ongoing
WRM agrees to host, and to pay for or fund, an Annual
Education Conference for the PRM Membership with respects
to the Property & Casualty only, and to make any and all
necessary meeting plans and ancillary arrangements for said
Conference including speakers or important subjects or issues
of interest to PRM and its Members.
WRM will continue to host, pay for and
fund the Annual Educational
Conference. Please note we have
revised the Scope to reflect Property &
Casualty only. At the 2010 Conference,
we added sessions for the GHT. We will
continue to work with the GHT to have a
portion of the Conference dedictated to
the GHT and will charge back any costs
associated with the GHT to Gallagher
Benefits. We received great feedback
for the 2010 Conference. We feel it was
very successful and we look forward to
next year's conference. We have
already begun securing speakers for
2011.
WRM has done most of the planning for the 2011
Conference as of today's date. WRM will continue
to host the Conference. This year's conference will
be held June 15 -17, 2011
Ongoing
WRM agrees, when requested in writing, to make
presentations at commission meetings to educate
commissioners.
WRM has not been asked to present at
any commission meetings during this
quarter.
WRM staff has attended all meetings
held during this time period.
ongoing
WRM continues to attend any and all meetings
requested by PRM and /or the Exectuive Board and
Members.
Ongoing
WRM agrees to attend all Board of Directors meetings, all
Executive Committee meetings, the annual Educational
Conference, meet with the PRM actuary and PRM accountant
at least once annually, and to attend any special meetings as
requested by the Executive Director.
WRM agrees to pertdrm tlt8 tobwtng insurance brokerage
services:
90 -120 days
prior to
renewal
1. Present all underwriting information and data to the
insurance markets for Excess Property, Inland Marine, Auto
Physical Damage, Excess Flood, Excess Third Party Liability,
Excess Crime, Excess Workers' Compensation, and other
coverage's as directed by the Executive Director.
N/A
N/A
90 days
prior to
2. Obtain competitive quotations from altemative markets,
where appropriate and /or available.
N/A
N/A
130 prior to
renewal
3. Analyze coverage needs of PRM.
N/A
This quarter we addressed the need for PRM to
get back to a 10/1 expiration date. We analyzed
the effect it would have on the pool to change
policy effective dates vs member effective date.
Ultimately, it was decided to change all policies to
a 10/1 date, except for Property.
Page 2 of 6
2010 QUARTERLY BROKER'S REPORT
Time Frame
Services
1st Quarter April 1-June 30
N/A
2nd Quarter July 1-Sept 30
N/A
Analyze
every year
as part of
renewal
4. Explore altemate funding, and higher self- insured
retentions.
Analyze
every year
60 days
prior
5. Explore the feasibility of changing to excess insurance
versus reinsurance agreement.
N/A
N/A
30 days
prior to
renewal
6. Analyze the proposals by underwriters and make
recommendations to the Executive Director and PRM.
N/A
N/A
25 days
prior to
renewal
7. Negotiate final terms and conditions with underwriters.
N/A
N/A
Given at
board
meeting
prior to
renewal
8. Provide detailed proposals to all PRM Members at the
Board Meeting preceding the renewal date.
N/A
N/A
Quarterly
9. Plan and conduct meeting with the underwriters as needed
or as directed by the Executive Director or PRM, to discuss
PRM.
During the Annual Ed Conf., PRM,
WRM, Accretive had discussions with
One Beacon and SUA. WRM also met
with One Beacon during PRIMA. An
underwriting trip to Chicago has been
planned for the beginning of the next
quarter with WRM, PRM, Accretive &
various carriers
In July, Ross Furry, John Litton and WRM staff
members traveled to Chicago and met with Altient,
SUA, Liberty Mutual and OneBeacon. The
meetings were very productive. Each carrier was
able to discuss the future of the PRM pool with
respects to their partnership and future growth.
The meetings were instrumental in developing the
ongoing relationship building that needs to occur
with the carriers on the program.
Ongoing
10. Monitor the financial strength of the insurers, excess
insurers or reinsurers providing coverage to PRM.
WRM continually monitors the carriers
that are insuring /reinsuring PRM to
make sure their financial strength
remains strong and will report any
negative changes to PRM as soon as
we are made aware of the change.
WRM continually monitors the carriers that are
insuring /reinsuring PRM to make sure their
financial strength remains strong and will report
any negative changes to PRM as soon as we are
made aware of the change.
As required,
quarterly or
annually
11. Perform statistical analysis on special projects such as
equitable distribution, performance of the loss fund, claims
analysis, etc..
WRM & Accretive have been working
this quarter with PRM and the Actuary
to develop acceptable allocation
methodology to be used in the futuer.
Also developing a new member rating
system.
N/A
Quarterly
12. Monitor and follow industry trends and report to the
Executive Director and Board of Directors on a quarterly
basis.
WRM continues to update PRM on any
trends or timely topics that have
occurred in the insurance industry at the
quarter Board Meetings as well as
quarterly articles submitted to the PRM
Newsletter.
WRM continues to update PRM on any trends or
timely topics that have occurred in the insurance
industry as they arise. While visiting carriers in
Chicago this past July, PRM received some
information from the carvers regarding how other
pools across the Country handle their insurance
programs.
Annually
13. Make a coverage comparison between PRM and its key
competitors that the parties agree to on an annual basis, with
the information available to WRM.
This will be preformed next quarter as
we are beginning to enter the
prospecting season and will obtain
competitor program information in the
coming months.
We did have a few comparisions provided to us
from prospective Consultants. These comparisons
have been provided to Ross Furry.
As
Necessary
14. Review contracts as requested by the Executive Director
and/or PRM Member and comment on the insurance and hold
harmless indemnification provisions.
This is performed on a weekly basis for
various members.
This is being performed upon request for several
members.
As
Necessary
15. Offer PRM Members other lines of Coverage not included
in the PRM Program such as (but not limited to) Florida
Statutory AD &D, Special Accident Coverage, Fiduciary
Liability, special bonding needs, Airport/Aircraft insurance, and
Pollution when requested by PRM Members.
N/A
Ongoing
Quarterly
WRM agrees to perform loss claim analysis and further
agrees to provide individual loss summaries on a quarterly
basis, during the term of this agreement.
This is performed by WRM's employee
located in PRM's office, Jim Sampson.
This is performed by WRM's employee located in
PRM's office, Jim Sampson.
Wr agfaea to assist (11 new member services as
tONOMr11:. ....
As stated
1. To arrange sales calls with eligible prospective members
that is interested in joining the PRM program together with the
Executive Director and Insurance Advisor.
N/A
N/A
Page 3 of 6
2010 QUARTERLY BROKER'S REPORT
Time Frama
Services
1st Quarter April 1-June 30
2nd Quarter July 1 -Sept 30
Annual h
2. Telemarketing to all eligible prospective members on
annual basis, obtaining expiration dates for their insurance
period and current canier(s) or program(s), and thereafter
communicating same to PRM.
This is currently being done by our
Partner agents. WRM is also working to
identify those prospects that will be
contacted and quoted on a direct basis.
N/A
As stated
3. Obtain proper underwriting and rating information from
prospective members to become new Members of PRM. PRM
and WRM will determine in writing which eligible prospective
members might be available for PRM membership or
solicitation.
WRM presented a prospect list to the
ED at the PRM Annual Ed Conf that
was approved. All other prospects will
be presented to the ED for approval on
a case by case basis.
WRM continued to work through a network of
Agents for prospecting. This process with be
changed going forward, but for the 2010 prospect
season, Agents were utilized. WRM worked with
the Agents to obtain underwriting and rating
information and we presented each of them to
PRM for approval and all approved prospects were
discussed with Ross prior to proposal.
As stated
4. Make at least one advertising mailing to all prospective
members annually.
This was done by one of our direct
agents, Chuck Wilde, in May. Chuck did
a mass mailing to all attendees at the
FCCMA Conference.
N/A
As stated
5. Obtain approval from Executive Director and PR for
prospective members to become new members of PRM. PRM
and WRM will determine in writing which eligible prospective
member might be available for PRM membership or
solicitation.
N/A
WRM, directly and through its agents, proposed 8
new prospective members for this 10/1. Each and
every prospect was reviewed with Ross Fury.
WRM and Ross, together, set the proposed costs
of the program. There were approximately 20 other
entities that were brought to PRM but were either
declined or did not qualify.
WRM agrees to provide the followtng addidonai poNcyholder
services:
As stated on
receipt
1. Review the insurance policies for compliance with the
proposals and the placement of coverage with the various
insurers.
WRM has reviewed each of the 4/1/10
policies that have been received and
provided to PRM. The 6/1/10 property
policies have not yet been received.
N/A
As stated on
receipt
2. Check the accuracy of each policy, binder, Certificate of
Insurance, endorsement, premium audit or adjustment or
other document received from the insurers and obtain any and
all necessary revisions in a prompt and timely manner.
WRM reviewed all 4/1/10 and 6 /1 /10
Binders for accuracy. If errors are
found, WRM has informed the ED of
any and all errors and have followed up
with carriers to get corrected. Once
corrected WRM has informed PRM of
the correction and provided the correct
document. Also, all COI's are reviewed
by staff.
N/A
As stated
3. Prepare a schedule of insurance policies, including the
name of the insurer, policy number, term, limits, retentions and
deductibles.
WRM prepared individual Member
Declaration Pages containing all
information listed. Further more, PRM is
provided a list of each member and the
covereages provided for each.
NW
April
4. Prepare a worksheet that contains each PRM Member's
differences in coverage's, e.g. special endorsements,
retroactive dates, limits, retentions, etc.
List of coverages by member was
provided to PRM on March 25, 2010
N/A
Ongoing
5. Field service calls.
N/A
This is done on an ongoing basis.
Performed upon request. Andy Cooper did make a
few service calls this quarter as members'
requested.
Ongoing - One addition that was completed this
quarter was Harder Hall at ACV value to the
property program.
As required
6. Address program /coverage inquiries, additions, deletions,
changes,etc.
Ongoing
7. Provide updates regarding published legislative changes
and marketplace changes as applied to public entities.
WRM secured a speaker at the 2010
Conference to address legislative
updates and WRM staff updated the
membership on marketplace changes
at the June 18th Board Meeting.
Ongoing - WRM provides this informaiton as it
comes up throughout the year and at the Annual
Conference.
WRM agrees to perform the ColNirtg renewal services:
As required
1. Assisting members where necessary with the completion of
renewal applications.
Renewal Applications were sent to the
10/1 members in April, 2010. Debbie
Young has been working with the
Agents and /or Members to collect the
renewal information and complete the
submission
During this quarter we received the 10/1 member
renewal applications.
Completed
on receipt of
submission
2. Reviewing all submissions and investigate any major
changes
N/A
This was done for the 10/1 members. Any major
changes were noted and reviewed with the
member to verify.
Page 4 of 6
2010 QUARTERLY BROKER'S REPORT
Time Frame
Services
1st Quarter April 1-June 30
2nd Quarter July 1 -Sept 30
120 days
prior to
renewal
3. Obtaining loss record and review with the Executive
Director
N/A
Each of the members were discussed and
reviewed with the Executive Director prior to
proposing
120 days
prior to
renewal
4. Analyze renewal data and loss information by developing a
marketing strategy, identifying needed enhancements to
current terms and conditions.
N/A
N/A
120 days
prior to
renewal
5. Marketing the renewal by generating renewal submissions
ensuring all data required for existing and new carvers
(including exposure spreadsheets), evaluating, trending and
summarizing loss history to validate negotiation strategies and
ensuring all markets interested in public entity pools are
approached.
N/A
N/A
60 days
prior to
renewal
6. Negotiating renewal terms by meeting with carriers to
ensure the best possible terms, conditions and premiums are
achieved.
N/A
N/A
Ongoing
through the
renewal
7. Appraising, and involving, the Executive Director and
Insurance Advisor with negotiations and available altematives
and options.
N/A
N/A
20 -30 days
prior to
renewal
8. Assisting the Executive Director with member contributions
and allocations.
N/A
Contributions for the 10/1 members will agreed
upon with the ED. The Allocations will be provided
the first part of the next quarter.
Prior to
Board
Meeting
9. Prepare member specific renewal proposals.
N/A
This was completed for all 10/1 renewal and new
members this quarter.
WRM agrees to perform the following additional services:
Ongoing
1. Introduction of WRM's agents, employees and
representatives to PRM and its Members.
WRM has introduced some of the
Agents on PRM to Ross Furry,
however, WRM will plan a date for Ross
to meet Chuck Wilde, Don Noel and any
others that he has not yet been
introduced to.
This is an area that will change going forward as
we will not be using a network of Agents next year
to prospect for PRM.
Ongoing
2. Continue to have an understanding of PRM's financials.
ongoing
N/A
Ongoing
This is an area that we continue to review and
monitor for different ways of structuring the
program. We wit be looking at different options
over the next year.
Ongoing
3. Evaluate and analyze program structure.
Ongoing
4. Continue to have an understanding of PRM's By -Laws.
ongoing
Ongoing
Ongoing
5. Continue to have an understanding and familiarization of the
PRM Coverage Document.
The Coverage Document was reviewed
during this quarter and endorsements
have been and are being processed.
Ongoing
Ongoing
6. Provide an analysis of the PRM quotes, proposals, binders
and policies.
N/A
N/A
120 prior to
expiration
7. Review, evaluate and analyze Member exposure for
marketing.
N/A
N/A
120 prior to
expiration
8. Create spreadsheets for exposure displays as required by
carriers.
N/A
Spreadsheets were updated for the October
renewal member and new October members.
Ongoing
9. Continue to understand and analyze PRM Ancillary
Coverage's.
Pollution & Airport
This quarter WRM renewed the Aviation Liability
policy with all existing members. All other ancillary
coverages are running smoothly.
WRM agrees to assist. word/ tate and/or provide the'folowing
services:
Prior to
renewal
1 Work with PRM actuary to perform actuarial loss forecasts.
N/A
N/A
As needed
2. Design policy forms and terms.
Andy updated the Coverage Document
after the 4/1/10 renewal and has
designed several endorsements to the
Coverage Document.
N/A
Page 5 of 6
2010 QUARTERLY BROKER'S REPORT
Time Frame
Services
1st Quarter April 1-June 30
2nd Quarter July 1 -Sept 30
60 days
prior to
renewal
3. Work with the Executive Director to perform Member
Allocations and loss fund contributions.
N/A
WRM did complete the renewal of
Prior to
expiration
4. Place Excess Insurance.
Andy, Michele and Hasib placed the
Excess Property Insurance at the
6/1/10 renewal date.
N/A
Ongoing
5. Administration of the pool and recordkeeping.
Ongoing
Ongoing
As needed
6. Assist in claims management services performed by TPA.
Ongoing
Ongoing
As needed
7. Assist in loss prevention services as needed by PRM.
Ongoing
Ongoing
As needed
8. Work with PRM appraisal company.
Ongoing
Ongoing
Annually
9. Obtain catastrophe modeling and impact forecasts.
N/A
N/A
As needed
10. Assist with consulting services.
N/A
N/A
As needed
11. Assist with claims advocacy and management.
Ongoing
Ongoing
As needed
12. Assist with casually loss prevention and safety services.
Ongoing
Ongoing
As needed
13. Provide contract review services.
WRM staff continues to provide this
service to the PRM staff and the
members. WRM did review some
contracts in the first quarter of the
contract term.
Ongoing
WRM agrees to perform the Mowing teetglQipgy services:
Ongoing
1. Operate and maintain a website that provides a s
personnel, a w company mission, o provides a schedule
and description and maintain
company
end des and contact pet macon.
WRM continues to maintain its website
and just completed updating some
information that was no longer valid.
WRM continues to maintain its website and just
completed updating some information that was no
longer valid. Future changes will be made as WRM
fully integrates with Ballator Ins Group.
Ongoing
2. Provide a password protected, PRM and Member specific
section on website.
WRM continues to maintain and area on
its website dedicated to the member.
This area holds the COI Request forms
and policy form.
WRM continues to maintain and area on its
website dedicated to the member. This area holds
the COI Request forms and policy form.
Ongoing
3. Post the Coverage Document on the website and make
available for printing by PRM and its Members from the
website.
Current Coverage Document is
displayed on the member area of
WRM's website
Current Coverage Document is displayed on the
member area of WRM's website
Ongoing
4. Maintain PRM's newsletter on the website.
Currently, we post the PRM newsletter
on our website. However, this will need
to be addressed when the electronic
version has been issued.
PRM will be providing their newsletter
electronically. We will address this once that
begins
Ongoing
5. Post PRM P &C Risk Management Manual and P &C By-
Laws on the website.
WRM maitains both of these documents
on the member area of the website.
WRM maitains both of these documents on the
member area of the website.
Ongoing
6. Provide Annual Educational Conference and invitations on
the website.
WRM did have a icon on their website
that linked the conference invitation,
information and registration to anyone
that visited our site.
N/A
Page 6 of 6
4.G. WRM & BALLATOR TEAM
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PUBLIC RISK MANAGEMENT OF FLORIDA
BOARD OF DIRECTORS MEETING
MARCH 9, 2011
REGULAR AGENDA SUMMARY
5. Chairperson's Items
A. Executive Director's Evaluation
John Litton, Chairperson
The Board of Directors is responsible each year for the annual performance evaluation of the
Executive Director. The performance appraisal is a two -tier process that includes an
evaluation by each member along with a more thorough evaluation by the Executive Board.
The latter is due to their generally having more interaction with the Executive Director and
observation in dealing with policy issues for the pool as a whole. Evaluation forms will be
mailed 3/1 and are due in the PRM office by 4/1.
B. Election of Officers — June Board Meeting
The term of office for Vice Chairperson and two Representatives expire 9/30/11. Individuals
interested in serving in one of the positions fora 2 -year term, beginning 10/1/11, should
submit their bios to the PRM office by May 1. Nominations from the floor will also be taken.
Elections will be held at the June 17` Board Meeting.
Vice Chairperson — Robbie Chartier, 10/1/10 - 9/30/11*
Representative — Robbie Chartier, 10/1/10 - 9/30/11
Representative — Woody Hubbard, 10/1/10- 9/30/11
*The Executive Board appointed Robbie Chartier to serve as Interim Vice Chairperson on
an emergency basis following Jeff Sutton's retirement.
6. Legal Counsel Report Donovan Roper, Esquire
7. Board Member Items
The next meeting will be held on June 17th at 9:00 a.m. during the Annual Conference at Marco Island.
Public Comment: Discussion must be limited to a maximum of five (5) minutes per person.
Adjourn
JUNE 18, 2010 @ 10:00 A.M.
[Std Member — Non- Voting]
Avon Park, City of
Barron Water Control District
Belleair, Town of
Belle Glade, City of 3 10 s,.;,tc,; y �� �s� •W,
Brooksville, City of
Clewiston, City of
Crystal River, City-of-
DeSoto County BOCC
Eustis, City of
Florida City, City of G e'
1sh d S .� S /o re v c / 10 1i4 - 3%
Otis - rs0 e
Fort Meade, City of
Glades County BOCC t) 4ra,c (e6,1
Gulf County BOCC
Gulfport, City of
Hardee County BOCC
Hendry County BOCC
Holmes County BOCC -ds7 ;ncie„ �.
Indian Rocks Beach, City of
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PUBLIC RISK MANAGEMENT OF FLORIDA
3434 HANCOCK BRIDGE PKWY, SUITE 203
FORT MYERS, FL 33903
1- 800 - 367 -1705
MAIN: 239 - 656 -4666
FAX: 239 - 656 -1066
Serving Florida Public Entities
March 29, 2011
TO: PRM P &C Board Members and Alternates
FROM: Judy Hearn, Assistant Executive Director
Secretary, Board of Directors
RE: Summary of March 9, 2011 Board of Directors Meeting
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * **
The following is a summary of the Board Meeting held March 9, 2011 in Lakeland. This is
being provided for your information only. The official meeting minutes will be presented for
approval at the next meeting on June 17, 2011.
Motions Passed
Consent Agenda: Approved 6/18/10 Board Meeting Minutes
Approved Treasurer's Report as of 12/31/10
Regular Agenda: Approved salary increase for PRM staff up to 4 %, based on merit.
Approved 10/1/2011 -12 Administrative Budget.
Approved motion to utilize surplus funds, not to exceed $4 million, as
participation credits for members' 10 /1 /11 renewal.
Approved implementation of Referral Program. This one -year program
was developed to assist in growing the Pool. A member referring a
prospective entity, which joins PRM as a new member in 2011, will
receive a 1.5% discount of the new member's premium. This discount
will be applied to the referring member's premium on 10 /1 /11, capped at a
maximum of 10 %.
3/9/11 Board Meeting Summary Page 1
Approved Robbie Chartier as Vice Chairperson for term expiring 9/30/11.
Meeting Summary: Telephonic Claims Reporting will be mandatory, effective July 1, 2011.
Gallagher Bassett will provide on -line access at no charge to the risx facs
website www.risxfacs.com for one user per member. A $500 fee per user
will apply for additional users.
2011 Educational Conference — Surplus funds will be utilized for one
night's room accommodation for each Preferred Board Member and
Alternate. The Group Health Trust Board of Directors approved one
night's accommodation for each GHT Board Member and Alternate. If a
Member represents both Boards and wants to utilize both nights, they may
do so.
2011 Meeting Dates & Locations:
Executive Board:
Tuesday, April 5, Terrace Hotel, Lakeland, 9:00 a.m.
Tuesday, April 26 — Hampton Inn, Lakeland, 9:00 a.m.
Wednesday, November 2 — Terrace Hotel, Lakeland, 8:30 a.m.
Board of Directors:
Friday, June 17 — Hilton Beach Resort, Marco Island, 9:00 a.m.
Wednesday, November 2 — Terrace Hotel, Lakeland, 10:00 a.m.
Workers Compensation and Liability carriers agreed to a flat rate
extension from 4/1 to 10 /1 /11. The broker intends to renew property the
first of June every year.
WRM will personally deliver proposals to members the first part of May.
The broker is offering 2 -year and 1 -year options. Members will receive a
price incentive in the form of a participation credit if they commit to a 2-
year offering. Final bind date is June 17.
A Deductible Program will be selectively offered to pre- approved
members. Deductible levels are $10,000, $25,000, $50,000, $100,000 and
$200,000.
PRM received an unsolicited proposal for brokerage services from AON.
The proposal represents significant savings to the membership. The
Executive Board held a lengthy discussion at their March 8th meeting, but
no decision was made. The Chairperson emphasized this has nothing to
do with WRM's service, it is a business decision based on proposed
savings for members. The Executive Board will meet on April 5th to hear
WRM and AON proposals. The Executive Board will present their
3/9/11 Board Meeting Summary Page 2
recommendation to the Board of Directors before committing to any
change in brokerage services.
Evaluation forms for the Executive Director were distributed and are due
to Susan Baron by April 1St
Elections for Vice Chairperson and two Representatives for a 2 -year term,
beginning 10 /1 /11, will be held at the June 17th Board Meeting.
Individuals interested in serving should submit their bios to the PRM
office by May 1St
3/9/11 Board Meeting Summary Page 3
PUBLIC RISK MANAGEMENT OF FLORIDA
EXECUTIVE BOARD MEETING
Hampton Inn, Lakeland, FL
January 11, 2011
Member Attendance: John Litton, Chairperson; Robbie Chartier, Interim Vice
Chairperson /Representative; Mike Sheppard, Treasurer; Woody Hubbard,
Representative; Frank Gilbert, Representative; Lester Baird, Representative; Ross
Furry, Executive Director; Judy Hearn, Assistant Executive Director, Secretary of the
Board of Directors; Bonnie Mims, Sr. Loss Prevention Consultant; Susan Baron,
Administrative Assistant
Other Attendees: Michele Jones, Andy Cooper, Sonia Fatheree, World Risk
Management, Hasib Bangloria, Glenn Tobey, Ballator Insurance Group; Peter Herron,
Non - Profit Insurance Services; Don Roper, Legal Counsel; Steve Gailbreath, City of
North Port; Chuck Coward, City of Indian Rocks Beach; Mary Kendall, City of Pahokee;
Jeff Sutton
After calling the meeting to order at 9:02 a.m., Mr. Litton recognized retired Executive
Board Vice Chairperson Jeff Sutton for his outstanding service to PRM.
Consent Agenda
1. Request Approval of August 25, 2010 Executive Board Meeting Minutes
2. Request Approval of Treasurer's Report as of September 30, 2010
Mike Sheppard made a motion to approve the Consent Agenda. Robbie Chartier
seconded the motion, and it was unanimously approved.
Regular Agenda
3. Executive Director's Report
A. 2011 PRM Educational Conference - Ms. Chartier made a motion to
approve utilization of surplus funds for one night's room
accommodation for each Preferred Board Member and Alternate of the
P &C Pool at the June Educational Conference. Lester Baird seconded
the motion, and it was unanimously approved. The Executive Board
also concurred to extend an invitation to Mr. Sutton and pay his room
accommodations.
B. 2011 On -Site Property Appraisals — The City of Zephyrhills is
scheduled for an on -site appraisal in 2011.
[Mr. Gilbert joined the meeting at 9:30 a.m.]
Page 1
C. AGRIP Spring Conference — The conference will be held in Clearwater,
Florida, from March 13 -16. The Executive Director requested those
interested in attending to contact PRM.
D. Vehicle Replacement — Two 2006 Ford Explorers used by Loss
Prevention Consultants were traded for two 2011 Ford Edges, utilizing
State contract pricing discounts. The new vehicles were within the
budgeted amount for replacement vehicles.
Mr. Furry advised a check in the amount of $191,538 was received from
Gallagher Bassett Services following a deposit premium audit for the
period 4/1/09-10.
The Executive Director advised of conversations with the broker regarding
growth of the Pool. He commented favorably on the broker's proposals
offering a 2 -year rate guarantee program and a deductible program in an
effort to retain members and provide stability for the Pool. Also discussed
was a financial incentive to existing members who refer a new member to
the Pool.
4. Broker's Report
A. 10/1 Effective Date Revision & Extension Update — The broker negotiated
a flat rate extension of coverage from 4/1/11 to 10/1/11 from Liability,
Workers' Compensation, Crime, Boiler & Machinery carriers as well as
from Gallagher Bassett Services, the third party claims administrator.
Members will be billed in April and July 2011. During member visits,
positive feedback was received to return to the 10/1 policy year.
B. PRM Property Extension Program Overview — A meeting was held in New
York with the property carrier, Lexington. An option was discussed for a
4 -month policy extension for 2011 and each consecutive renewal period,
providing coverage from 6/1 to 10/1. This option requires a 10% deposit
of the total premium to be paid by November 20th. A cancellation clause
will be included to provide PRM the ability to cancel the policy in the event
of a financial downgrade of Lexington. The Executive Board concurred
not to take the extension option this year, but to reconsider for the 2012
renewal.
C. PRM Financial Overview — Final Assessment of Financial Impact of 10/1
Change — The broker reviewed the projected premium distribution for the
extension period to 10/1/11.
1/11/11 Page 2
D. Property & Casualty Renewal 2011
a. Timeline — To assist members with their May budgeting time - frame,
renewal applications were sent in November with a due date of
1/5/11. This year the broker streamlined the application with
members only needing to update information. Eleven members
failed to meet the deadline. The broker recommended assessing a
penalty for late responses. With concurrence from the Executive
Board, the broker will send a letter to those members, advising that
a 5% increase on all exposures will be assessed.
10- minute break at 10:15 a.m. Meeting reconvened at 10:25 a.m.
[Ms. Kendall, City of Pahokee, entered the meeting.]
b. Excess Placement Marketing Plan — Mr. Tobey advised that a
Broker of Record letter is no longer required before contacting a
prospective member. He reviewed an aggressive approach for the
2011/12 renewal, providing an action timeline. During the week of
1/10/11 the broker will submit Property to markets for 6 -1 -11
renewal. On 2/15/11 the broker will prepare /send submissions to
markets for 4 -1 -11 renewals. By 3/15/11 a firm quotation is due
from Gallagher Bassett Services for claims administration. The
broker is also researching other third party administrators for claims
handling. By 4 -15 -11 the broker will have a first draft for member
pricing. Proposals will be provided to members between 5/1 and
5/15. Preferred Members committing to a 2 -year plan must reply by
6/17. Final bind date for all other members is 9/15. Binders and
invoices will be distributed to members on 10/1.
c. Update on Renewal Information Received to Date — Mr. Cooper
reviewed list of carriers contacted for Excess Workers
Compensation, Property, and Liability — General /Auto and Public
Officials. The broker is pursuing 2 -year programs with rate
guarantees. NCCI Workers Compensation rates in Florida are
increasing approximately 8 %. The broker is considering a stand
alone policy for public officials liability. The Executive Director will
be advised if any wholesalers are utilized.
E. Enhancements: Items to be Considered for upcoming renewal
a. 2 -Year Program Offering — Mr. Bangloria recommended offering a
2 -year policy to members for all lines of coverage. A 2 -year
program would provide more stability for PRM. Members must
commit to the 2 -year program by June 2011. Discussion was held
on providing an incentive in the form of a participation credit to
members enrolling in the 2 -year plan. The broker indicated the
1/11/11 Page 3
program should include subjectivity in Property coverage which
allows for a mid -term adjustment in price if the market increases by
20 -25 %. Concern was raised on effect of recent Florida law
regarding 60 days notice to withdraw from a pool. The Executive
Director advised that Florida Statutes do not prohibit a member
from entering into multiple year commitments or contracts.
Consensus of the Executive Board was to provide a 2 -year offering
for all lines of coverage and to provide a 20% cap on property
coverage.
b. Deductible Program Offering — The broker recommended instituting
a per occurrence deductible program to existing and prospective
members. The program is not suitable for all members and will be
selectively offered. All claims will continue to be reported to
Gallagher Bassett in the event of future litigation. The Executive
Board concurred on offering $10,000, $25,000, $50,000 and
$100,000 deductible levels for selected lines of coverage.
F. WRM Broker Service Report - Ms. Jones provided the broker's second
quarter report. She advised the need to update the Scope of Services
attachment to the brokerage agreement. The revision will be
submitted to the Executive Director and Legal Counsel for their review.
During member visits, although WRM staff received positive feedback,
there were five major items members were requesting:
1. Board of Directors Meetings — Expressed interest in having at
least three meetings during the year.
2. Access to claims on -line through Gallagher Bassett.
Currently, a fee of $1900 /year is charged by Gallagher Bassett
to access their on -line claims service.
3. On -Line Training — Bonnie Mims advised that members
already have the opportunity to access on -line training through
the National Safety Council. She will contact the individuals
interested in this service and provide instructions.
4. Chart showing "Who Do I Call for What" — New member
employees would like a one -page sheet indicating who to call
for questions on coverage, claims, etc.
5. Telephonic Claims Reporting — Some members prefer to fax
claims rather than using the telephonic claims reporting
service. Ms. Mims indicated faxing is still acceptable but
recommended making the use of telephonic reporting
mandatory. By utilizing this service, the claim is immediately
1/11/11 Page 4
entered into the Gallagher Bassett system and assigned a
claim number. A copy of the telephonic report is promptly
emailed to the entity's contact person. Mr. Gilbert made a
motion giving authority to the Executive Director to establish a
date for making telephonic claims reporting mandatory.
Motion was amended to make telephonic claims reporting
mandatory beginning July 1, 2011. Ms. Chartier seconded the
amended motion, and it was unanimously approved.
G. WRM & Ballator Reorganization — Mr. Bangloria briefly explained the
realignment of individuals.
5. Legal Update
A. Amended By -Laws - Florida State Statute 624.46223 — Mr. Roper
reviewed Articles 4.2, 4.3 and 17.1.6 of the By -Laws which were amended
to comply with Florida State Statute 624.46223. The 1 -year notice of
intent to withdraw at the end of the policy year for Preferred Members was
replaced with 60 days. Approval to amend the By -Laws by the Board of
Directors was not needed as the requirement resulted from an operation
of statute. The Chairperson and Legal Counsel granted approval for the
Executive Director to electronically release the amended By -Laws to
Board Members.
Mr. Baird asked if a revision to the By -Laws was needed to grant the
Chairperson the authority to appoint an individual to serve on the
Executive Board on an interim basis to fill a vacancy until the Board of
Directors were able to vote on the replacement. Mr. Roper recommended
making a policy change rather than amending the By -Laws. The
Executive Director and Executive Board concurred with adopting a policy
change.
B. Information regarding Legislative item, Paycheck Fairness Act, Senate Bill
182 (S182) to be addressed by the 111th U. S. Congress as proposed by
Secretary of State Hilary Clinton — On behalf of PRM, Mr. Roper wrote to
all sitting Senators and Congressmen, lobbying against the bill. The bill
was defeated in the Senate.
Returning to a previous discussion regarding the reporting of claims that fall
under a deductible level, Mr. Roper reviewed Article 11.1 and applicable sub-
sections indicating a member's obligation to report claims as soon as
possible. Paragraph 6 of the PRM coverage document also stipulates the
terms and conditions on reporting claims.
Mr. Gilbert requested the status on attendance of meetings by electronic
means. Mr. Roper indicated case law studies disfavor electronic participation
1/11/11 Page 5
as it violates Florida's Sunshine Law and public records. Motions passed at
meetings have been invalidated.
6. Member Items
A. 2011 Meeting Dates — The following meeting dates and locations were
established, pending hotel availability:
Executive Board:
Tuesday, 3/8/11 — 2:00 p.m. Terrace Hotel, Lakeland
Tuesday, 4/26/11 — 9:00 a.m. Hampton Inn, Lakeland
Wednesday, 11/2/11 — 8:30 a.m. Terrace Hotel, Lakeland
Board of Directors:
Wednesday, 3/9/11 — 10:00 a.m. Terrace Hotel, Lakeland
Friday, 6/17/11 — 9:00 a.m. Hilton Hotel, Marco Island
Wednesday, 11/2/11 — 10:00 a.m. Terrace Hotel, Lakeland
Mr. Gilbert made a motion to approve the meeting dates. Mr. Hubbard
seconded the motion, and it was unanimously approved.
Mr. Gilbert requested meeting invitations be sent via MS Outlook calendar.
Ms. Hearn confirmed ability to send to members.
There were no comments from the public.
Meeting adjourned at 12:45 p.m.
Respectfully submitted,
Judith A. Hearn
Asst. Executive Director, Secretary to PRM Board
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