|
|
|
Specialty Lines
Greetings!
In our promotional materials and presentations about CCAP's insurance programs, the focus is most often about the menu of services we provide. There is one area that goes unsaid, but it is important.
Our programs make sure you have met all legal requirements, regulations and filing deadlines.
This is mainly the work that goes on behind the scenes. Here is a list of just some of the things we need to do to keep everything in compliance:
- Daily electronic submission of work comp first report of injury information to Labor and Industry.
- Payment of quarterly unemployment compensation claims reimbursements to Labor and Industry.
- Responding to all claims filing deadlines, including responding to lawsuits and workers' compensation claims reporting deadlines.
- Keeping our reinsurers up to date on claims which could enter their insurance layer, based on their claims reporting requirements.
- Providing annual report details as required by Labor and Industry, including information about our loss control programs.
- Enrolling employees in health insurance coverage, providing them with needed documentation and insurance cards.
- Arranging and paying for annual elevator inspections.
- Arranging and paying for annual boiler inspections
- Meeting licensing requirements for coverage for nursing homes.
- Providing CE credits for nursing home administrators, insurance producers and nurses.
- Providing proof of auto/vehicle insurance.
- Providing proof of bonding/crime insurance for public officials.
We take these responsibilities seriously and work diligently to make sure we don't let you down.
Make sure you contact us when you need help with something,
John Sallade |
|
|
PCoRP Annual Membership Meeting
The 27th Annual Meeting of the PCoRP membership will once again be held at the CCAP Fall Conference. The dinner meeting will be Sunday evening, November 24, at the Hotel Hershey. The dinner will start at 6:30 p.m. and should conclude by 8:30 p.m. After dinner there will be a short business meeting, and the presentation of PCoRP's annual awards. There are no proposed bylaws amendments, and no board elections this year. However, there will be a special announcement which will be of interest to all members!
There is no cost for you to attend the meeting, and you are welcome to bring your spouse or a guest. But you do need to preregister for the dinner (we would like to have enough seats and food for everyone)! Registration is easy - just click here and email us the names and titles of who is attending. We have also sent each PCoRP member an email invitation.
So please come and enjoy a great meal and some good news from PCoRP!
If you have any questions about the dinner meeting or about PCoRP, please contact John Sallade. |
|
Regulatory Update: MSRB G-17
New rule is designed to protect and inform local governments in the bond issuing process
By Brad Remig, Managing Director, Public Financial Management (PFM)
As a county official or staff member, you may have received letters - or may receive them in the future when you have a debt financing or refinancing to do - from brokerage firms that seek to serve as underwriters of your bonds. These letters will state plainly that, as an underwriter, they have their own financial goals that may be in conflict with yours. The goal of these written statements is to inform a local government or other issuer of municipal bonds (the "borrower") that, while underwriters are looking to serve your municipality as fairly as possible - an underwriter should not be mistaken for a financial advisor.
These announcements are the result of the Securities and Exchange Commission's (SEC) guidelines, which took effect in August of 2012 to approve rules requiring underwriters to be more forthcoming to local governments and authorities about their goals, and to protect municipal bond issuers against making decisions that may result in higher costs.
The rules, titled MSRB G-17, are part of a significant set of requirements drafted by the Municipal Securities Rulemaking Board (MSRB) in which the MSRB concluded that municipal bond issuers have not been given adequate caution by their underwriters of the potential conflicts of interest and the financial risks being taken by municipal bond issuers as a result of their underwriters' bond proposals. At the same time, MSRB G-17 is intended to make a clear distinction between a firm that provides a financial service, and one that provides actual financial advice, even assigning a new term to the latter - a municipal advisor. These rules are mandated by the Dodd-Frank Act, which for the first time charged federal securities regulators with protecting the interests of municipal bond issuers.
Disclosures concerning the underwriter's role
The language of MSRB G-17 outlines the following:
- An underwriter must deal fairly at all times with municipal bond issuers and investors.
- The underwriter's primary role is to purchase securities with a view to distribution in an arm's length commercial transaction with the bond issuer and it has financial and other interests that differ from those of the bond issuer.
- Unlike a municipal advisor, the underwriter does not have a fiduciary duty to the bond issuer under the federal securities law, and is therefore, not required by federal law to act in the best interest of the bond issuer without regard to its own financial or other interests.
- The underwriter has a duty to purchase securities for the bond issuer at a fair and reasonable price, but must balance that duty with its duty to sell municipal securities to investors at prices that are fair and reasonable.
- The underwriter will review the official statement for the bond issuer's securities in accordance with, and as part of its responsibilities to investors under federal securities laws as applicable to the facts and circumstances of the transaction.
The underwriter must also not recommend that the bond issuer not retain a municipal advisor.
PFM: A financial advisor
Public Financial Management (PFM) is the largest independent municipal advisor for financing transactions of local governments throughout the United States. We bring these recent regulatory developments to your attention because the MSRB and SEC have stepped in to protect municipal bond issuers from underwriters discouraging local governments from having their own independent expert advice during the financing process.
Please note that PFM is not advocating that bond issuers sever or abandon their relationship with their underwriter, but rather simply engage PFM to absorb the role of a municipal advisor. The regulatory authorities have recognized the value of advice that is independent of underwriter conflicts of interest, and that underwriters and municipal advisors can work together successfully for the benefit of the issuer.
From its market-leading position, PFM has much value to offer municipal bond issuers. We would welcome the opportunity to discuss our services with you.
To read the full text of MSRB G-17 visit http://www.msrb.org. To obtain more information, please contact a PFM Financial Advisory representative in Harrisburg at 717-232-2723.
Brad Remig is a Managing Director with PFM. He provides financial advice to municipalities and schools and works out PFM's Harrisburg office.
This material is based on information obtained from sources generally believed to be reliable and available to the public, however PFM Asset Management LLC cannot guarantee its accuracy, completeness or suitability. This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation. All statements as to what will or may happen under certain circumstances are based on assumptions, some but not all of which are noted in the presentation. Assumptions may or may not be proven correct as actual events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Past performance does not necessarily reflect and is not a guaranty of future results. The information contained in this presentation is not an offer to purchase or sell any securities. |
Fire Safety & Fire Extinguishers
By Andrew C. Smith, Loss Control Specialist
Fire safety refers to precautions taken to prevent or reduce the likelihood of a fire that may result in death, injury, or property damage. It includes alerting those in a structure to the presence of an uncontrolled fire in the event one occurs which better enables those threatened by a fire to survive in and evacuate from affected areas; or to reduce the damage caused by a fire. Staying current with required fire protection systems and equipment will reduce your risk of loss. Ensure that your facility is properly equipped to face a fire emergency and compliant with all applicable regulatory Pennsylvania code. There is a plethora of information on fire safety, fire prevention, fire extinguishers and regulatory codes. Highlighted below are a few fire safety tips to consider when reviewing policies and procedures. For more information, please contact CCAP's Loss Control department. Fire Extinguishers A fully charged and properly maintained fire extinguisher can help minimize damage to your building and injuries to your employees, residents and visitors. Monthly inspections, annual maintenance and expert hazard assessments keep your equipment operational and ensure you have the right extinguisher where you need it. Fire extinguishers do have limitations. Fires can grow and spread rapidly. The number one priority is to get everyone out safely. When using a fire extinguisher, remember the word PASS; - Pull the pin. Hold the extinguisher with the nozzle pointing away from you and release the locking mechanism.
- Aim low. Point the extinguisher at the base of the fire.
- Squeeze the lever slowly and evenly.
- Sweep the nozzle from side-to-side.
Install fire extinguishers close to an exit and keep your back to a clear exit when you use the device so you can make an easy escape if the fire cannot be controlled. If the room fills with smoke, leave immediately. Always remember that fire extinguishers have limitations. Because fires can grow and spread so rapidly, the number one priority is to get everyone out safely. Know when to go. Fire extinguishers are one element of a fire response plan, but the primary element is safe escape. Every county should have a fire escape plan and working smoke alarms.
Sprinkler Systems
There are an array of fire prevention systems, the most common being wet and dry sprinkler systems. Since we know fires can spread with startling speed, an approved well-maintained sprinkler system will slow down a fire's progress until emergency personnel arrive. Sprinklers extinguish fires about 20% of the time and help control the spread of fires. Statistics vary somewhat; however, wet sprinklers are from 68% to 94% effective depending on the type of occupancy (NFPA 2010). Over 50% of failures are attributed to water shut-off before the fire. Monthly, quarterly and annual inspections of fire prevention systems can ensure efficiency.
Monthly inspections include visually inspecting sprinkler heads by making sure there's no paint on them or anything hanging from them. The inspection should also include verifying that the gauges on wet pipe systems are in good condition and that normal air and water pressure are being maintained.
In addition to required monthly inspections, quarterly inspections are also recommended. For hydraulically designed sprinkler systems, inspect the hydraulic nameplate to verify that it's securely attached to the sprinkler riser and is legible. Verify alarm devices are free of physical damage. Inspect fire department connections to verify that they are visible and accessible. Examine couplings or swivels are not damaged and rotate smoothly. Be sure plugs or caps are in place and not damaged and confirm identification signs are in place. Annual inspections and testing should be completed by a licensed sprinkler contractor.
Lastly, ensure that the facility has an emergency evacuation plan and staff is instructed on what to do in the event of an emergency. Verify evacuation floor plans are posted throughout the facility. Conduct and document periodic fire drills per shift (as required) to verify staff understand emergency evacuation procedures. Confirm that the drill includes the transmission of a fire alarm signal and simulation of emergency fire conditions. Practicing fire and life safety with your employees at your business can help minimize emergency incidents due to fire and other dangerous situations. Know safety, no accidents.
For more information, contact the CCAP's Loss Control department at (800) 895-9039; or email us at:
Gary Nicholson, CHSP, Loss Control Services Manager
Maureen McMahon, CPS, ARM, Loss Control Specialist
Andrew Smith, Loss Control Specialist
Dennis Cutler, CHSM, Loss Control Specialist |
| Fall Workshop Opportunities!
The fall trainings are underway. Even though a month of the fall workshop season has already passed us by, we still have many great educational opportunities for you to take advantage of.
As a reminder, 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 the CCAP Insurance Programs Member Listing.
FALL WORKSHOP OPPORTUNITIES:
The CCAP insurance programs continues to collaborate with the Academy for Excellence in County Government. This fall we are offering two required courses for Academy participants and they are FREE to current Academy participants. This is the last time these courses will be offered before graduation.
Please note: We ask for your understanding as CCAP undergoes an expansion project at our North Office Building. We hope to host our Harrisburg location trainings at our office location, but there may be a need to relocate to another Harrisburg location due to construction noise. We will keep you apprised of the situation.
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 4, 2013 CCAP North Office - Harrisburg UC Trustees Meeting October 11, 2013 CCAP North Office - Harrisburg CCAP Health Alliance Board Meeting October 18, 2013 CCAP North Office - Harrisburg PCoRP Annual Membership Meeting November, 24, 2013 The Hotel Hershey COMCARE Delegates Meeting November 26, 2013 The Hotel Hershey COMCARE Board Meeting November 26, 2013 The Hotel Hershey COMCARE PRO Subscribers Meeting November 26, 2013 The Hotel 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 Equipment Breakdown Insurance Coverage
In the "old days," Equipment Breakdown Insurance Coverage was called Boiler & Machinery Coverage. This caused some confusion as it was assumed that only an entity having large boilers or heavy duty industrial machinery needed the coverage. Actually, any organization using any type of equipment needs Equipment Breakdown Insurance Coverage. Many public entities may not understand how vulnerable they are in today's electronic world, and they may not know about the options available to them under Equipment Breakdown Insurance Coverage. Losses to specific equipment can paralyze public entities in a number of ways. The loss of just one piece of equipment can halt critical services.
A good way to understand the need for such coverage is to first understand what Equipment Breakdown Insurance Coverage is intended to protect against. A typical commercial property policy usually contains exclusions with respect to a "covered cause of loss". These exclusions include the following:
- Any electrical injury or disturbance to electrical appliances (sometimes also referred to as electrical "arcing" or "short")
- Any loss to computers, software, data, media, computer network or any other electronic equipment (such as computerized equipment or similar devices)
- Failure or breakdown of machinery or equipment, including rupture or bursting caused by centrifugal force
- Explosion of steam boilers/piping or gas turbines
- Rupture and/or bursting of hot water boilers or other equipment for heating water
- Interruption of one or more services provided by a public or private utility if the failure occurs away from the covered location/premises (sometimes referred to as "service interruption" or "utility interruption")
Considering these many exclusions, making Equipment Breakdown Insurance Coverage part of your insurance program is important to reduce coverage gaps in the event of a loss. Equipment Breakdown Insurance Coverage provides coverage for the exclusions listed above that are not covered by a commercial property policy.
According to industry equipment breakdown claim data, boilers and water heaters are typically not the largest contributor (in terms of volume or dollars) to Equipment Breakdown Claims. Rather, most of the losses are distributed among the following:
- Air conditioning equipment
- Refrigeration equipment
- Electrical distribution equipment including breaker panels, transformers, meters, etc.
- Electrical equipment including motors, lighting (indoor and outdoor), alarm systems, telephone systems, scoreboards and marquees
- Mechanical equipment including pumps (such as those in deep wells or lift stations), filter presses (in waste water facilities), torque-clutch devices (such as those used for clarifiers for waste water treatment plants), air compressors (from commercial to industrial settings), etc.
- Irrigation equipment
- Computer equipmentServices Connect Contact
Note that, regarding computer equipment, and depending on the provisions of the policy of a particular insurer, the following equipment may or may not be covered in the event of a breakdown:
- Programmable electronic equipment (i.e. desktop / laptop computers or controllable programmers) that is used to store, retrieve and process data.
- Associated peripheral equipment such as: monitors, printers, UPS devices, modems, data transmission lines, etc.
- Business equipment including photocopying machines and fax machines; and "Media" including electronic data processing or storage material such as CDs, software programs and flash drives and "data," generally considered to programmed and recorded material stored on media.
The Equipment Breakdown Insurance Coverage provided under PCoRP's Policy includes coverage for all of the equipment listed above. If you are not a PCoRP member, it is important to check your Equipment Breakdown Insurance Coverage to be sure that coverage extends to all of these types of equipment.
Equipment Breakdown Insurance Coverage goes beyond merely providing insurance for physical damage to equipment. Equipment Breakdown Insurance Coverage can also offer a portfolio of risk control and claim services that can potentially save money and protect an organization's bottom line. An organization does not want to suffer from an unplanned breakdown to their equipment. To this end, with Equipment Breakdown Insurance Coverage, various insurers, including PCoRP, offer the following additional services:
- Technical risk control expertise from a staff of experienced consultants. Risk control consultants are focused on looking at the entire operation's electrical and mechanical exposures.
- Risk Control consultants who possess certification from the National Board of Boiler and Pressure Vessel Inspectors to conduct the inspections required to determine if a boiler/pressure vessel is in a condition that satisfies the law so that it may continue operating.
- Claim personnel who are dedicated to the investigation and adjustment of Equipment Breakdown Claims or Losses, and who understand the connections between both the property and various Equipment Breakdown Insurance Coverages.
As mentioned above, the necessity for Equipment Breakdown Insurance Coverage is not always well understood. An insured should attempt to become familiar with the provisions of their insurance policy. Ask questions or point out conditions that are unique to your operations. One size doesn't necessarily fit all. Not only do you need to know "what" you're paying for, but you must understand the "why" behind it too.
Questions or comments? Contact Karen Cohen, CCAP's Property and Casualty Programs Manager. |
|
Quote of the Month
"There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle."
- Albert Einstein |
|
|
|
|
