Volume 22 Issue 10

October 2012


www.pacounties.org
INSURANCE MATTERS
An e-newsletter of the County Commissioners
Association of Pennsylvania Insurance Programs

 

Owned by Members   Governed by Members   Service to Members
In This Issue
PCoRP 25th Anniversary Celebration
PCoRP Model Prison Strip Search Policy Update
Nationwide: A Most Trusted Company
Over the Hills and Through the Woods
Fall Training Classes
Upcoming Events
Coverage Corner
Quote of the Month
 
Quick Links
 
 
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Speciality Lines

 
Greetings!  

Ah, budget time. That wonderful season of planning, prognostication and probably also prayers! Every year I try to provide some guidance about what you can expect to see in the next year regarding insurance costs.

 

I can't stress enough that the estimates I am providing are about rates in general. The MOST important factor regarding your pricing is your county or entity's claims experience. You need to be honest with yourself and look at the claims you have had in the past year (paid and reserved) and if you have had high claims costs you need to budget for premium increases. Reach out to your insurers in advance, and ask how your experience compares to other employers your size, and what impact that will have on next year's premium.

 

Having said that (please go back and read the last paragraph again!), the other thing to remember is that the property, liability and workers' compensation insurance market is changing and rates are trending upwards. I don't think we are seeing a true "hard market" as the insurers still have lots of capacity and are willing to write business. However the companies are being more selective about what they will write, and we are seeing more pressure to raise attachment points (meaning the insured has a higher deductible or self insured retention) in addition to increased premiums.

 

As for specific CCAP programs, here is the scoop:

  • The CCAP UC Trust is seeing a flattening of unemployment compensation claims, but is still recovering from the last three years of extremely high claims, so expect a ten percent increase (the board meets in late October to decide).
  • PComp's rates for workers' compensation insurance will remain flat (the same rates as 2012).
  • PCoRP's renewal in June 2013 is hard to predict, but I would suggest a five percent increase is not out of the question.
  • The CCAP Health Alliance is currently quoting interested counties and county related entities for 2013. The group purchasing power and administrative efficiencies of the existing DVHIT pool have allowed us to offer matching plan designs at three to five percent below 2013 renewal rates.
  • PELICAN members can expect the same rate or a reduction for the March 1, 2013 renewal of their nursing home liability insurance.
  • COMCARE PRO's rates are rising slightly, depending on each member's claims experience.

Keep in mind that while the rates for a CCAP program might remain the same, your final costs could be higher or lower than last year based on your claims experience and any changes in your exposures.

 

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

                              John Sallade

 
PCoRPAnnivWebUseLogo  
PCoRP 25th Anniversary Celebration

 

The Pennsylvania Counties Risk Pool (PCoRP) will celebrate its 25th anniversary at the CCAP Fall Conference. The celebration starts Sunday evening, November 18 at 6:30 p.m. at the Hotel Hershey. Representatives of PCoRP members and their local insurance producers received invitations via email in late September. Spouses or guests are also welcome. There is no charge to attend, but preregistration is required. Contact Tona Faust at CCAP to register.

 

The evening will include special presentations to each PCoRP member, some 25th anniversary gifts, and the return of past PCoRP board members and staff. We will also be making some exciting announcements about what to expect from PCoRP in the coming year! Please join us for a fun evening of celebration.

 

Questions about the PCoRP dinner should be directed to John Sallade at CCAP.
PCoRP Model Prison Strip Search Policy Updated

 

Earlier this year the U.S. Supreme Court ruled in the Florence case, broadening the legal defense for a prison strip search to include when a pretrial detainee will be housed with other inmates. PCoRP's Corporate Counsel, Barb Zemlock, with the assistance of PCoRP defense counsel Marie Milie Jones, have revised the PCoRP Model Strip Search Policy to reflect this change. The PCoRP Board of Directors approved the policy on September 14. Copies were sent to all PCoRP members via email on September 18, and the policy was posted to the warden's list serve.
 

PCoRP believes it is essential for county prison management to consistently document why someone is being strip searched, even if the only reason is because they will be housed with other inmates (meaning the prison does not have the ability to segregate pretrial detainees). If any lawsuits arise from the strip search, this documentation will likely prove invaluable in the defense of the claim.

 

IMPORTANT: Per the PCoRP Coverage Document, PCoRP members with prisons must adopt this strip search policy (or one very similar to it) in order for the county to have coverage to defend a strip search related claim. If the county does not have a prison, it should make sure the prisons where its inmates are being housed have an updated policy in place. Please note that adopting the policy also means using it, keeping documentation and training prison staff about the policy.

 

Click here for a link to the model policy document.

 

Nationwide: A Most Trusted Company for Privacy 

 

Nationwide didn't say that. The Ponemon Institute said that about Nationwide.

 

The Ponemon Institute is an organization dedicated to advancing responsible information and privacy management practices in business and government.

The Institute regularly conducts surveys about consumer concerns about data privacy and security. For the fifth time in the past seven years, Nationwide has been named by Ponemon as one of most Trusted Companies for Privacy.
 

Citing its survey's findings this year, Ponemon says:1
 

  • Consumers feel they are losing control of personal information.
  • Identity theft is top of mind.
  • Privacy "features" contributed to consumer trust.

 

One of the reasons the National Association of Counties selected Nationwide as provider of the NACo Deferred Compensation Plan is because of the importance county employees place on their ability to trust the people they work with when planning and investing for retirement. Nationwide is part of the TRUSTe Privacy Program, a program designed ensure that the privacy of personal information is protected by its members. 2

 

From encryption software and firewalls, to passwords and safety certification, to ongoing training in PC security and identity theft prevention, Nationwide's On Your Side® commitment to privacy extends well beyond the e-world. So when county employees are managing their retirement accounts, county employers can be sure there are people on your side working to protect their identity and data.

 

No one is immune to threats to their privacy. Not even us. But you can rest assured that Nationwide puts security first. For you. For your plan. For your participants. Read more about Nationwide's Privacy Policy at www.nationwide.com/other/privacy.jsp.

 

For additional information about the NACo Deferred Compensation Program, please contact Lisa Cole with NACo or phone at (202) 942-4270 or contact Louie Watson with Nationwide or phone at (614) 854-8895.

 

Sources:

1."Ponemon Survey Names Twenty Most Trusted Companies for Privacy", Media Release, February 26, 2010.

2."Nationwide Insurance named a top company for privacy", Media Release, March 4, 2010.
 

NRM-4940AO-NX.1 (03/2011)

©2011, Nationwide Retirement Solutions. Nationwide, the Nationwide Framemark and On Your Side are service marks of Nationwide Mutual Insurance Company.
 

Nationwide Retirement Solutions (Nationwide) makes payments to the National Association of Counties (NACo) and the NACo Financial Services Center Partnership (FSC) for services and endorsements that NACo provides for all its members generally related to Nationwide's products and services sold exclusively in public sector retirement markets. More detail about these payments is available at www.nrsforu.com.

 

Over the Hills and Through the Woods

By Maureen McMahon, Loss Control Specialist 
 

When you have family spread out over the states, or even one state, your calendar year isn't broken down into months. It's broken down into holidays and other noted times of travel. When planning for a trip, there is always a laundry list of things to do.
 

Unfortunately, people rarely consider making a pre-trip inspection of their vehicle, as part of the planning process. By-passing a quick inspection of your vehicle is an open-invitation to find yourself broken down on the side of the road. You can do a lot to avoid the costly fees of towing and services by being proactive and following a few simple steps.
 

Here is a checklist from the National Safety Council drivers can use to reduce the risk of a breakdown:

  • Be sure tires (including the spare) are properly inflated. Watch out for uneven tread wear and follow your owner's manual for proper tire rotation and frequency. Take your car to an ASE-certified technician to have tires rotated and balanced.
  • Test brake lights, headlights and turn signals to make sure they work properly. Change any weak bulbs.
  • Replace worn wiper blades.
  • Check fluid levels under the hood including battery fluid, brake fluid, coolant, oil, transmission fluid and windshield wiper fluid.
  • Check belts and hoses for any visible cracks or bulges. If belts and hoses are over four years old, take your car to a certified technician and have them replaced.

In case of a roadside emergency, the National Safety Council recommends you be prepared with a "survival kit" that should always remain in the car. Ten essential supplies include:

  • Blanket and warm clothing
  • Compass
  • Exterior windshield cleaner and coolant (also called antifreeze)
  • First aid kit
  • Non-perishable food
  • Ice scraper and snow brush
  • Reflective triangles and brightly-colored cloth
  • Tool kit
  • Water
  • Working flashlight and extra batteries

Over the hills and through the woods to Grandmother's house we go.

 

Please Join Us For Some Excellent Trainings This Fall!

By Linda Rosito, Insurance Training Director

 

The fall workshop season is in full swing! Please don't miss out on the great educational opportunities we have to offer! We have a great season planned with topics such as compassion fatigue, dealing with difficult people and an advanced course in dealing with unions. The fall season also includes our always popular Excellent Supervisor Seminars with topics on selecting the right candidate when interviewing and evaluating for accountability.

 

Most of the workshops are FREE to attend if your county is a member of the sponsoring Insurance Programs. To check if your county is a member of the sponsoring program, please refer to Glimpse Online and CCAP Insurance Programs Member Listing.

 

Here is a quick look at the remaining workshops this fall.

 

FALL WORKSHOP OPPORTUNITIES:

The CCAP Insurance Programs continues to collaborate with the Academy for Excellence in County Government. Please refer to our website for additional information on co-sponsored events. These workshops are FREE to current Academy participants.

 

If you need additional copies of the fall Glimpse please email us at glimpse@pacounties.org and we will get extra copies out to you. All the information is also available at Glimpse Online.

 

As always, if you have any questions, please feel free to contact Linda Rosito or Jenn James at (800) 895-9039.

 

We hope to see you this fall!

 

Upcoming Events

  • PIMCC Board Meeting
    October 5, 2012
    CCAP North Office, Harrisburg
     
  • UC Board of Trustees Meeting
    October 12, 2012
    CCAP North Office, Harrisburg
     
  • COMCARE PRO Annual Subscribers Meeting
    November 8, 2012
    The Penn Stater Conference Center Hotel
     
  • COMCARE Delegates Meeting
    November 20, 2012
    The Hotel Hershey, Hershey
     
  • COMCARE Board Meeting
    November 20, 2012
    The Hotel Hershey, Hershey
     

Board and committee meetings of all CCAP insurance programs are open to members of those pools. If you plan to attend a meeting, please let us know in advance so we can plan for room set-up and any meals. Send your attendance plans to John Sallade at CCAP.  

Coverage Corner 

Reminders and Pointers about Insurance Coverage and Risk Management

 

Insurance Requirements in Contracts
 

We talk a lot about the importance of insurance requirements in contracts. That's because counties are busy with contract agreements every day. Contracts can involve projects ranging from major construction to mowing the grass. When determining what insurance requirements should be included in a contract, a practical approach should be taken. For example, there would generally be more stringent insurance requirements for contractors who are going to provide major building construction, such as building a jail or courthouse, than those who might come on site to repair plumbing, do interior carpet cleaning, painting or making small repairs to structures. This latter group can be considered more as service vendors and generally not pose the degree of risk of loss as a contractor doing a major construction project. Three criteria to consider when establishing insurance requirements include:

 

  • The dollar size of the contract.
  • The length or time frame of the contract.
  • The type and hazard level of the work to be performed. 

Of the three mentioned above, the hazard level of the work to be performed should be given the most attention. There are four basic hazard levels to consider:

 

  • Low Hazard - carpenters, plumbers (no digging or trenching), painters, small repair or service type work and most consultants.
  • Medium Hazard - roofers, plumbing with minor digging (six inches or less), cement work, grading of landscape, landscapers and building maintenance/cleaning work.
  • High Hazard- excavation and underground work, road projects, erection and welding work, all building and infrastructure construction and renovation work and lease of premises agreements.
  • Special Hazard - major building and infrastructure projects, contracts involving environmental and asbestos exposures and similar extra-high hazardous operations.

Always require proof that the required insurance you included in your contract with the service provider is in place throughout the full term of the contract. This proof of insurance is typically provided by a Certificate of Insurance. CCAP's insurance staff can help with your contract insurance requirements, just give us a call.

 

Questions or comments? Contact Karen Cohen, CCAP's Property and Casualty Programs Manager.

Quote of the Month
 
"Some things you learn best in calm, and some in storm."
 
- Willa Cather
 
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Contact Us: John Sallade, Managing Director, CCAP Insurance Programs