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Burlington County Municipal Joint Insurance Fund

Burlington County Municipal Joint Insurance Fund

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Burlington County Municipal Joint Insurance Fund

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  1. Burlington County Municipal Joint Insurance Fund 2008 Fund Commissioner Orientation April 15, 2008

  2. Burlington County Municipal Joint Insurance Fund • Explain JIF Concept • Provide JIF Overview • Organizational Structure • Staff Roles & Responsibilities • Operations & Programs • Coverage Provided • Financial Results • Answer Questions Purpose of Today’s Meeting

  3. This is YOUR JIF!We Are Here to Serve You • Use Fund Commissioner Handbook • Contact a Fund Professional • Safety Consultant - Commerce Risk Control Services • Managed Care CHN/CSG • Claims - Scibal Associates • Fund Administrator - AJG Risk Management Services, Inc. • Fund Attorney - William J. Kearns, Jr., Esq. B U R L C O J I F Fund Commissioner Handbook Use yourRisk Management Consultant

  4. What’s A JIF? • Joint Insurance Fund commonly referred to as a “JIF” • Successful example of inter-local cooperation. • Statutory Authorization - N.J.S.A.40A:10-1 et. seq. • A JIF is a mechanism through which municipalities can join together to take advantage of lower costs associated with self insurance. Why JIF?

  5. JIFs Proved to be a Better Way! JIFs have allowed municipalities to join together to take advantage of lower costs and additional services associated with self insurance and to achieve coverage and pricing STABILITY!

  6. Who’s In The JIF? • Bass River • Beverly • Bordentown City • Chesterfield • Delanco • Delran • Edgewater Park • Florence • Hainesport • Lumberton • Mansfield • Medford • Mt. Laurel • Riverside • Shamong • Tabernacle • Southampton • Springfield • Westampton Medford Lakes, Moorestown, Evesham, Maple Shade, and Willingboro belong to affiliated JIFs

  7. New Jersey’s Joint Insurance Funds • Highly regulated: • Specific Legislation • N.J.S.A. 40A:10-1 et. seq.. • Rules and Regulations • Department of Banking and Insurance • N.J.A.C. 11:15-2.1 et. seq. • Makes Joint Insurance Funds highly accountable!

  8. JIF Operations

  9. Operating Documents • JIF Bylaws • Set forth operating authority • Requires 75% member approval to amend • Plan of Risk Management • Updated each year • Delineation of coverage • Claims handling philosophy • Coverage Documents • Distributed in June each year Fund OperatingDocuments B U R L C O J I F

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

  11. Fund Commissioner • Member of Municipality’s governing body - 2 yrs. • One of its municipal employees - until replaced • Responsibilities • Empowered to operate the Fund • Represent municipality • Serve as liaison between Fund and municipality

  12. Fund Professionals • Actuary – The Actuarial Advantage • Attorney - William J. Kearns, Jr. • Auditor – Bowman & Company • Claims Administration - Scibal Associates • Managed Care – CHN/CSG • Safety - Commerce Risk Control Services • Treasurer - Tom Tontarski • Administrator - AJG Risk Management Services, Inc. “The Fund hires an administrator, and the members share a safety director and specially qualified claims attorneys.”

  13. Risk Management Consultants Under contract with municipality to provide specific professional services: • update exposure data • place optional coverage • respond to coverage questions • order and review certificates of insurance • provide technical advice • other duties as negotiated Formerly served as insurance agent

  14. JIF Meetings • Executive Committee • Third Tuesday of each month • Discuss reports • Review claims • Committee Meetings • as needed • MEL - Jeff Hatcher • RCF - Dave Matchett • E-JIF – Rich Brook

  15. JIF Safety Programs Safety First, Last, and Always

  16. Why is Safety Important? • Safety is the cornerstone of a successful JIF • Prevention of claims is less costly in long run • It makes good sense to reduce costs and risks associated with accidents because it’s your money • 76% of local JIF budget is devoted to claims payments • An ounce of prevention is worth a pound of cure! “This savings comes through the pooling of assets and losses and the sharing of services,” NJ Banking and Insurance Commissioner Elizabeth Randall explained. “And because the cities, towns and school boards own the funds, they carefully monitor safety in order to reduce claims.” • It’s your money!

  17. Safety Coordinator • Full time municipal employee • Usually supervisorylevel or above • Responsibilities • Coordinate safety efforts • Chair municipal safety committee • Serve as liaison between Commerce Nat’l and member municipality • Disseminate safety information

  18. SafetyDocuments • JIF Safety Program • Loss Control Policy • Policies and procedures • Safety Bulletins • Self-Help Checklists Safety CoordinatorsHandbook B U R L C O J I F

  19. JIF Safety ProgramsHelping Towns Help Themselves • Member driven safety policies • On-site Loss Control Surveys • Policies, procedures and guidelines • Self-help facilities checklists • Certificate of insurance guidelines • Accident investigation reports • Safety Handbook • Training Programs - MSI • Right to Know, Defensive Driving, Confined Space, etc.. • Safety Bulletins • Seminars and Educational Updates • Police Civil Liability • Sexual Harassment • Safety Video Library

  20. Optional Safety Budget • Annual allowance • Available to members to use to meet local safety needs (i.e., equipment, supplies, training) • Can also be used to assist members in completing Safety Director’s Suggestions for Improvement • Reimbursement directly to municipality $27,900 Balances published monthly in JIF Agenda Packet Must be used by November 30, 2008

  21. Annual Safety Incentive Program • Heighten Safety Awareness • Encourage Safe Behavior • Create a Safer Workplace • Build a Safety Culture • Reward Safety Effort • Annual cash awards $23,525 The Safety Incentive Program is the most successful program of its kind in the state with high member participation!

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

  23. MEL SAFETY INSTITUTE(MSI)

  24. MEL Safety Institute (MSI) • Readily available training • Valuable training • Convenient training • Cost effective training

  25. MEL Safety Institute (MSI) • Initial focus was on regulatory compliance • Training provided on a regional basis, utilizing approximately 90 sites throughout the state. • All programs are available to all member employees. • Many of the training programs will provide Continuing Education Credits.

  26. MSI Learning Management System Website • On-line registration for MSI Classes • Track MSI learning history • Record external (non-MSI) learning events • Planning & Recordkeeping tool • Order videos on line • Telephone HELP Line: 1-866-661-5120

  27. Improved MSI Training • MORE CLASSES: MSI conducted over 1,300 classes in 2007 and MSI registrations topped 27,000 statewide!! • 600 BURLCO Employees attended MSI Classes in 2007 • Class Updates and Revisions for 2008 • Jetter / Rodder • Heavy Equipment • Ladder and Fall Prevention • Leaf Vac • Sanitation & Refuse Collection • Accident Investigation

  28. More New MSI Classes in 2008! • Bloodborne Pathogen Train-the-Trainer • Playground Safety Inspection • Seasonal Public Works Operations • Advanced Safety Leadership Program

  29. NJMEL.ORGOn-Line Safety Videos Password = “mel”

  30. MEL Initiatives: On Line Safety Videos & Training • Storm Water Management Training • Crossing Guards • Urban Driving • “Survival Driving” • Don’t Do It – Don’t Take It • On-line videos “for members only”

  31. MEL VIDEO LIBRARY www.njmel.org Over 600 Titles!

  32. World Wide Web Page WWW.NJMEL.ORG • Address: http:\\www.burlcojif.org • Access to worldwide safety resources • “JIF Information Center”

  33. In the JIF, everyone has to be a Risk Manager! • We’re all in this together! • Everyone shares in the JIF’s success! • Safety is everyone’s job! All employees and supervisors must recognize that they play an important role in risk management.

  34. Risk Management . . . . . . Beyond Safety • Risk Avoidance • Risk Transfer • Certificate of Insurance Guidelines • Indemnification and Hold Harmless Agreements • Contract Review • Risk Control Facilities Special Events Contractors/Vendors

  35. JIF Claims Programs When Florence has a claim ... … Medford says OUCH!

  36. REPORT ALL CLAIMS PROMPTLY! “Workplace injuries reported within ten (10) days of their occurrence cost an average of $10,172, while ones reported after thirty (30) days average $15,745, Kemper National Insurance Companies finds. Early reporting leads to quicker treatment, while delay lets problems fester and increases chances of litigation, says Kemper.” “LABOR LETTER’, THE WALL STREET JOURNAL, AUGUST 10, 1993 Time is money.... Still holds true today!

  37. Claims Coordinator • Full time municipal employee • Usually in administration • Responsibilities • Coordinate prompt reporting of all claims • Maintain supply of claim forms • Coordinate flow of information between Scibal and member municipality

  38. BURLCO Claims Experience Fund Years 2005 - 2007 50% our claims are for Workers Compensation But they account for 74% of our costs!

  39. Establish Claims ProceduresTake charge and remain in control • Coordinate all claims reporting • Report accidents promptly • Require employees to report ALL injuries • Conduct prompt accident investigations • Gather facts & interview witnesses while memories are fresh • Learn from mistakes and teach others • Direct medical care • 1-800 Claims Reporting 24/7 • Immediate medical intervention • Encourage early return to work • Establish lines of communication • Employee • Nurse Case Manager • Adjuster • Physician

  40. Average Cost Per Claim(Fund Years 2005-2007) Liability claims are also costly!

  41. Liability Issues

  42. JIF Liability Initiatives • Road, Sign and Walkway Condition Report Program • Additional workshops • Snow plow safety, jetter safety, etc. • Personnel policies/procedures EPL Hotline!

  43. Police Liability Initiatives • “Liability Beat” Newsletter • Civil Litigation Handbook • Police liability seminars • Management of Aggressive Behavior • Fatigue Awareness Seminar • Ad Hoc Committee of Chiefs • Police specific safety program

  44. Law Enforcement Accreditation Program • Administered by NJ Association of Chiefs of Police • Application Fee waived for JIF members • JIF will reimburse 50% of Accreditation & Re-accreditation fee upon completion • Participation is encouraged by JIF/MEL 5% MEL liability discount AND $1,000 • MEL Grant for agencies who complete • the program

  45. Is It Worth the Effort? • The proof is in the results.... • Fewer Claims • Premium Stability • Dividends!

  46. Fewer Claims 11% An 11% increase in claims as membership has grown by 80%!

  47. Average Cost Per Claim Claims Counts are Steady But Severity is on the Rise!