BURLINGTON COUNTY INSURANCE COMMISSION ......2015/06/04 · All operations usual to County 5/4/2015...

BURLINGTON COUNTY INSURANCE COMMISSION AGENDA AND REPORTS

JUNE 4, 2015

COUNTY ADMINISTRATION BUILDING ROOM 209, SECOND FLOOR

49 RANCOCAS ROAD MT. HOLLY, NJ 08060

2:00 PM OPEN PUBLIC MEETINGS ACT - STATEMENT OF COMPLIANCE

In accordance with the Open Public Meetings Act, notice of this meeting was given by: I. Advertising the notice in the Burlington County Times II. Filing advance written notice of this meeting with the Commissioners of the Burlington County Insurance Commission; and III. Posting notice on the Public Bulletin Board of the Office of the County Clerk

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BURLINGTON COUNTY INSURANCE COMMISSION

AGENDA OPEN PUBLIC MEETING: JUNE 4, 2015

49 RANCOCAS ROAD MT. HOLLY, NJ 08060

2:00 PM

MEETING CALLED TO ORDER - OPEN PUBLIC MEETING NOTICE READ ROLL CALL OF COMMISSIONERS APPROVAL OF MINUTES: May 7, 2015 Open Minutes ...................................Appendix I May 7, 2015 Closed Minutes ..................................... Handout CORRESPONDENCE COMMITTEE REPORTS

Safety Committee: ....................................................................................................... Verbal Claims Committee: ..................................................................................................... Verbal

EXECUTIVE DIRECTOR/ADMINISTRATOR – PERMA ........................................ Pages 2-9 EMPLOYEE BENEFITS – PERMA ...............................................................................Pages 10-25

TREASURER – Edward J. Troy Resolution 29-15 June Bill List .................................................................................................. 6 March Treasurer Monthly Reports.......................................................................................Pages 27-28 ATTORNEY – Robert A. Baxter .................................................................................... Verbal CLAIMS SERVICE – PMA Management Corp.

Monthly Report.......................................................................................................... Pages 29-31

CEL SAFETY DIRECTOR – J.A. Montgomery Risk Control Monthly Report................................................................................................................. Page 32

OLD BUSINESS NEW BUSINESS PUBLIC COMMENT CLOSED SESSION Resolution 30-15 Closed …………………………………………………………….…..Page 33 Motion for Executive Session (in accordance with the Open Public Meetings Act, N.J.S.A. 10:4-

12) Motion to Return to Open Session MEETING ADJOURNMENT NEXT SCHEDULED MEETING: TBD COUNTY ADMINISTRATION BUILDING

49 RANCOCAS ROAD, MT. HOLLY NJ 08102, 2:00 PM

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BURLINGTON COUNTY INSURANCE COMMISSION 9 Campus Drive, Suite 16

Parsippany, NJ 07054 Telephone (201) 881-7632 Fax (201) 881-7633

Date: June 4, 2015 Memo to: Commissioners of the Burlington County Insurance Commission

From: PERMA Risk Management Services Subject: Executive Director's Report Certificate of Insurance Issuance Report (Pages 4-5) – Attached on pages 4-5 is the

certificate of insurance issuance report from the CEL listing those certificates issued for the period of 4/30/15 to 5/26/15. There were 6 certificate of insurances issued during this period.

Motion to approve the certificate of insurance report

NJ Excess Counties Insurance Fund – The CEL did not meet in May. The next CEL meeting is scheduled for June 25, 2015 at 1:00 PM.

BCIC Financial Fast Track (Page 6) - Included in the agenda on page 6 is a copy of the Financial Fast Track as of March 31, 2015. The report indicates the Commission has a surplus of $1,155,295. Line 8 of the report, “Investment in Joint Venture” is Burlington County Insurance Commission’s share of the equity in the CEL. BCIC’s equity in the CEL as of March 31, 2015 is $467,380.

NJ CEL Property and Casualty Financial Fast Track (Page 7) – Included in the agenda on page 7 is a copy of the CEL Financial Fast Track Report for the month of February. As of February 28, 2015 the Fund has a surplus of $5,802,522.

Claims Tracking Reports (Pages 8-9) – The new claims tracking reports are on pages 8-9 of the agenda. The Executive Director will review the Claims Activity Report and Expected Loss Ratio Analysis Report as of April 30, 2015 with the Commission.

County’s Legacy Claims – The Executive Director will hold a discussion on including the County’s legacy claims as part of the Insurance Commission.

PERMA Change of Address - As of Monday, June 7, 2015, the office of PERMA Risk Management Services will move to the second floor of their building. The only change in the address is the suite number as noted below.

PERMA 9 Campus Drive, Suite 216

Parsippany, NJ 07054

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Welcome Robyn Walcoff – Mary Lou Doner, Vice President of Claims for the NJ Counties Excess JIF (NJCEL) will be retiring on July 1st. Robyn Walcoff, currently a Claim Consultant for Conner Strong & Buckelew, will succeed Mary Lou Doner. Robyn Walcoff earned a law degree from George Washington University Law School and has over ten years of claims experience beginning with the law firm of White and Williams. From there, Robyn joined the ACE insurance company as Claims Representative specializing in complex liability claims before moving over to Conner Strong & Buckelew as a Claims Consultant. In that capacity, she was responsible for public entity claims involving the NJCEL and is experienced in both Title 59 and New Jersey Workers’ Compensation.

BCIC Meeting Schedule – The Commission is not scheduled to meet in July, however, there is a need to schedule a meeting as a result of the Employee Benefit Program. We are proposing a meeting date of Thursday, July 16th at 2:00 PM. If this agreeable with the Commissioners PERMA will advertise the meeting in the Commission newspaper.

Motion to schedule of Commission meeting on Thursday, July 16, 2015 at 2:00

PM

Health Benefits Report (Pages 10-25) - The Health Benefit Report starts on page 10. Today there will be a Public Hearing on the 2015 Health Insurance Budget.

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Burlington County Insurance Commission Certificate Of Insurance Monthly Report Wednesday, May 27, 2015

From 4/30/2015 To 5/26/2015 Description of Issue Holder (H) / Insured Name (I) Holder / Insured Address Code Operations Date Coverage Burlington H- Burlington County Farm Fair PO Box 475 Columbus, NJ 08022 496 Certificate holder is additional insured where obligated by virtue of a 5/20/2015GL EX AU WC I- Burlington County Bridge Commission 1300 Route 73 North PO Box 6 Palmyra, NJ 08065 written contract or written mutual aid agreement or other written agreement with the Named Assured, but only in respect to acts or operations by or on behalf of the Named Assured, and subject to the limitations on coverage contained in any such written contract or written mutual aid agreement or other written agreement with regard to the Farm Fair on July 14, 15, 16, 17, 18, 19. Company E: XS Worker Compensation Statutory x $1,000,000 XS Employers Liability $5,000,000 x $1,000,000 Policy Term 1/1/15 to 1/1/16 Policy # SP4052392 H- State of New Jersey Department of Environmental 553 Evidence of insurance. All operations usual to County Governmental 5/13/2015 PR Protection State Mosquito Control Commission Entity as respects to lease of State Equipment as follows: P.O. Box 400 Trenton, NJ 08625 SMCC#21 1988 Boston Whaler NJ 6543 FA SN#BWCM1779J788 I- County of Burlington 49 Rancocas Road Mt. Holly, NJ 08060 valued at $6,000 SMCC#22 1988 Boat Trailer SG-A25M SN#1CZBF11S0J1052781 valued at $700 valued at $8,200 SMCC#23 2002 Outboard Motor (Johnson) SN#G04998791 SMCC#70 2007 ULV Machine (Curtis Dyna-Jet L30) SN#L30-373 valued at $16,725

SMCC#70A 2007 Curtis Dyna-Trax GPS monitoring and reporting system SN#12464 valued at $7,500, SMCC#106 2002 Revco Ultra Low Temp Freezer SN#X09M-603341-XM valued at $6,659

H- Moorestown Mall 400 Route 38 Moorestown, NJ 08057 842 Moorestown Mall, LLC, PREIT Services, LLC, PRIET Associates 5/18/2015 GL EX AU WC I- County of Burlington 49 Rancocas Road Mt. Holly, NJ 08060 LP, Twin Oaks Community Services are additional insured where obligated by virtue of a written contract or written mutual aid agreement or other written agreement with the Named Assured, but only in respect to acts or operations by or on behalf of the Named

Assured, and subject to the limitations on coverage contained in any such written contract or written mutual aid agreement or other written agreement as

respects to the Touch a Truck Event to be held on 9/26/15. Company E: XS Worker Compensation Statutory x $1,000,000 XS Employers Liability $5,000,000 x $1,000,000 Policy Term 1/1/15 to 1/1/16 Policy # SP4052392 H- Carslake Community Center 207 Crosswicks Street Bordentown, NJ 08505. 1103 Evidence of insurance. All operations usual to County 5/4/2015 GL EX AU WC I- County of Burlington 49 Rancocas Road Mt. Holly, NJ 08060 Governmental Entity as respects the Senior Event held at this site on May 8, 2015 by the Aging Department. (see page 2)

Company E: XS Worker Compensation Statutory x $1,000,000 XS Employers Liability $5,000,000 x $1,000,000 Policy Term 1/1/15 to 1/1/16 Policy # SP40523920

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H- Rutgers, The State Univ. of NJ University Procurement Serv 3 Rutgers Plaza, 2nd FL 1252 Evidence of insurance. All operations usual to County 5/26/2015 GL EX AU WC New Brunswick, NJ 08901 Governmental Entity as respects the Grant for Traumatic Lost I- County of Burlington 49 Rancocas Road Mt. Holly, NJ 08060 Coalition. (SEE PAGE 2)

Company E: XS Worker Compensation Statutory x $1,000,000 XS Employers Liability $5,000,000 x $1,000,000 Policy Term 1/1/15 to 1/1/16 Policy # SP4052392 H- NJ Transit One Penn Plaza East, 4th Floor Newark, NJ 07105 1512 Certificate holder and any other party of interest designated by NJ 5/1/2015 GL EX AU WC Transit are additional insureds where obligated by virtue of a written I- County of Burlington 49 Rancocas Road Mt. Holly, NJ 08060 contract or written mutual aid agreement or other written agreement with the Named Assured, but only in respect to acts or operations by or on behalf of the Named Assured, and subject to the limitations on

coverage contained in any such written contract or written mutual aid agreement or other written agreement with regard to the FY12 JARC Rd 14 Grant

Program Company E: XS Worker Compensation Statutory x $1,000,000 XS Employers Liability $5,000,000 x $1,000,000 Policy Term 1/1/15 to 1/1/16 Policy # SP4052392

Total # of Holders = 6

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AS OF

THIS MONTH YTD CHANGE PRIOR YEAR END FUND BALANCE1. UNDERWRITING INCOME 377,937 1,132,305 13,590,017 14,722,3222. CLAIM EXPENSES

Paid Claims 100,925 250,306 2,956,498 3,206,803Case Reserves 15,973 (71,383) 2,357,510 2,286,127IBNR (317,450) 161,900 1,338,478 1,500,378Discounted Claim Value (16,324) 35,935 (240,360) (204,425)

TOTAL CLAIMS (216,876) 376,758 6,412,126 6,788,8833. EXPENSES

Excess Premiums 164,579 493,732 5,578,545 6,072,277Administrative 29,816 84,082 1,124,241 1,208,323

TOTAL EXPENSES 194,395 577,814 6,702,786 7,280,6004. UNDERWRITING PROFIT (1-2-3) 400,417 177,733 475,105 652,8395. INVESTMENT INCOME 2,126 5,401 24,716 30,1176. PROFIT (4 + 5) 402,544 183,135 499,821 682,9577. CEL APPROPRIATION CANCELLATION 0 0 4,958 4,9588. INVESTMENT IN JOINT VENTURE 0 32,301 435,079 467,380

9. SURPLUS (6 + 7 + 8) 402,544 215,436 939,858 1,155,295

SURPLUS (DEFICITS) BY FUND YEAR

60,411 53,866 911,525 965,391116,751 51,391 (116,030) (64,639)158,627 15,154 144,364 159,518

66,755 95,025 95,025

TOTAL SURPLUS (DEFICITS) 402,544 215,436 939,859 1,155,295

TOTAL CASH 4,079,336

CLAIM ANALYSIS BY FUND YEAR

FUND YEAR 2012Paid Claims 18,418 38,295 1,227,626 1,265,921Case Reserves 7,794 (49,525) 404,529 355,004IBNR (82,727) (55,306) 130,171 74,865Discounted Claim Value (3,226) 13,191 (37,196) (24,005)

TOTAL FY 2012 CLAIMS (59,740) (53,345) 1,725,130 1,671,785

FUND YEAR 2013Paid Claims 15,057 47,683 1,217,371 1,265,054Case Reserves 10,349 (73,178) 1,149,891 1,076,713IBNR (139,191) (40,423) 284,166 243,743Discounted Claim Value (2,490) 23,576 (91,572) (67,996)

TOTAL FY 2013 CLAIMS (116,276) (42,342) 2,559,856 2,517,514

FUND YEAR 2014Paid Claims 36,501 122,625 511,500 634,125Case Reserves (50,091) (109,741) 803,090 693,349IBNR (143,594) (57,698) 924,141 866,443Discounted Claim Value (3,613) 24,170 (111,592) (87,422)

TOTAL FY 2014 CLAIMS (160,797) (20,644) 2,127,139 2,106,495

FUND YEAR 2015Paid Claims 30,950 41,703 41,703Case Reserves 47,921 161,061 161,061IBNR 48,062 315,327 315,327Discounted Claim Value (6,996) (25,002) (25,002)

TOTAL FY 2015 CLAIMS 119,937 493,089 0 493,089

COMBINED TOTAL CLAIMS (216,876) 376,758 6,412,125 6,788,883

BURLINGTON COUNTY INSURANCE COMMISSIONFINANCIAL FAST TRACK REPORT

March 31, 2015ALL YEARS COMBINED

2012201320142015

This report is based upon information which has not been audited nor certified by an actuary and as such may not truly represent the condition of the fund.

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AS OF February 28, 2015

THIS YTD PRIOR FUNDMONTH CHANGE YEAR END BALANCE

1. UNDERWRITING INCOME 1,821,517 3,643,034 54,944,225 58,587,2592. CLAIM EXPENSES

Paid Claims 4,821 257,222 411,505 668,727Case Reserves 24,127 (228,273) 683,535 455,261IBNR 97,206 187,894 8,429,959 8,617,853Discounted Claim Value (12,511) 202,819 (1,189,781) (986,961)

TOTAL CLAIMS 113,643 419,663 8,335,218 8,754,8813. EXPENSES

Excess Premiums 1,242,712 2,486,159 36,750,168 39,236,327Administrative 135,490 262,346 4,080,877 4,343,223

TOTAL EXPENSES 1,378,202 2,748,505 40,831,045 43,579,5504. UNDERWRITING PROFIT (1-2-3) 329,672 474,867 5,777,962 6,252,8295. INVESTMENT INCOME 1,956 4,699 152,545 157,2446. STATUTORY PROFIT (4+5) 331,627 479,566 5,930,507 6,410,0737. Cancelled Appropriations 0 0 607,551 607,5518. STATUTORY SURPLUS (6-7) 331,627 479,566 5,322,956 5,802,522

SURPLUS (DEFICITS) BY FUND YEAR

27,307 47,005 680,166 727,17153,348 87,153 994,756 1,081,909

7,526 (8,328) 822,655 814,32755,671 57,978 1,310,706 1,368,68417,983 (52,331) 1,514,673 1,462,342

169,792 348,089 348,089TOTAL SURPLUS (DEFICITS) 331,627 479,566 5,322,956 5,802,522TOTAL CASH 6,557,168

CLAIM ANALYSIS BY FUND YEAR

FUND YEAR 2010Paid Claims 4,106 6,497 142,195 148,692Case Reserves (7,093) (9,484) 24,085 14,601IBNR (26,438) (55,227) 463,719 408,492Discounted Claim Value 2,285 11,640 (41,484) (29,844)

TOTAL FY 2011 CLAIMS (27,141) (46,575) 588,515 541,940

FUND YEAR 2011Paid Claims 0 0 144,097 144,097Case Reserves (1,656) (1,659) 2,671 1,012IBNR (56,643) (117,721) 1,113,232 995,511Discounted Claim Value 5,245 32,989 (121,623) (88,634)

TOTAL FY 2011 CLAIMS (53,054) (86,391) 1,138,377 1,051,986

FUND YEAR 2012Paid Claims 715 250,726 125,213 375,939Case Reserves 32,972 (217,040) 653,695 436,655IBNR (45,229) (92,132) 1,521,091 1,428,959Discounted Claim Value 4,387 67,792 (240,518) (172,726)

TOTAL FY 2012 CLAIMS (7,156) 9,346 2,059,481 2,068,827

FUND YEAR 2013Paid Claims 0 0 0 0Case Reserves 1 3 2,025 2,028IBNR (64,735) (131,634) 2,322,975 2,191,341Discounted Claim Value 9,548 74,908 (311,625) (236,717)

TOTAL FY 2013 CLAIMS (55,186) (56,723) 2,013,375 1,956,652

FUND YEAR 2014Paid Claims 0 0 0 0Case Reserves (98) (94) 1,058 964IBNR (23,612) (43,119) 3,008,942 2,965,823Discounted Claim Value 6,970 97,383 (474,530) (377,147)

TOTAL FY 2014 CLAIMS (16,739) 54,170 2,535,470 2,589,640

FUND YEAR 2015Paid Claims 0 0 0Case Reserves 2 2 2IBNR 313,863 627,727 627,727Discounted Claim Value (40,946) (81,892) (81,892)

TOTAL FY 2015 CLAIMS 272,919 545,836 0 545,836

COMBINED TOTAL CLAIMS 113,643 419,663 8,335,218 8,754,881

NEW JERSEY COUNTIES EXCESS JIFFINANCIAL FAST TRACK REPORT

ALL YEARS COMBINED

201020112012201320142015

This report is based upon information which has not been audited nor certified by an actuary and as such may not truly represent the condition of the fund.

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AS OF April 30, 2015C O V E R A G E L I N E - PROPERTYC L A I M C O U N T - O P E N C L A I M SYear 2010 2011 2012 2013 2014 2015 TOTAL

March-15 0 0 0 0 0 0 0April-15 0 0 0 0 0 0 0

NET CHGE 0 0 0 0 0 0 0Limited Reserves #DIV/0!Year 2010 2011 2012 2013 2014 2015 TOTAL

March-15 $0 $0 $0 $0 $0 $0 $0April-15 $0 $0 $0 $0 $0 $0 $0

NET CHGE $0 $0 $0 $0 $0 $0 $0Ltd Incurred $0 $0 $42,202 $0 $2,109 $1,271 $45,582C O V E R A G E L I N E - GENERAL LIABILITYC L A I M C O U N T - O P E N C L A I M SYear 2010 2011 2012 2013 2014 2015 TOTAL

March-15 0 0 6 13 26 9 54April-15 0 0 5 15 20 14 54

NET CHGE 0 0 -1 2 -6 5 0Limited Reserves $11,148Year 2010 2011 2012 2013 2014 2015 TOTAL

March-15 $0 $0 $94,278 $168,999 $306,690 $2,703 $572,670April-15 $0 $0 $81,753 $197,545 $280,153 $42,540 $601,992

NET CHGE $0 $0 ($12,525) $28,546 ($26,536) $39,837 $29,322Ltd Incurred $0 $0 $368,700 $355,964 $522,012 $522,012 $1,768,687C O V E R A G E L I N E - AUTO LIABILITYC L A I M C O U N T - O P E N C L A I M SYear 2010 2011 2012 2013 2014 2015 TOTAL

March-15 0 0 0 0 16 7 23April-15 0 0 0 0 7 5 12

NET CHGE 0 0 0 0 -9 -2 -11Limited Reserves $7,657Year 2010 2011 2012 2013 2014 2015 TOTAL

March-15 $0 $0 $0 $0 $90,240 $5,229 $95,468April-15 $0 $0 $0 $0 $84,381 $7,500 $91,881

NET CHGE $0 $0 $0 $0 ($5,859) $2,271 ($3,588)Ltd Incurred $0 $0 $7,877 $41,428 $155,885 $18,357 $223,548C O V E R A G E L I N E - WORKERS COMP.C L A I M C O U N T - O P E N C L A I M SYear 2010 2011 2012 2013 2014 2015 TOTAL

March-15 0 0 9 17 12 20 58April-15 0 0 8 16 11 24 59

NET CHGE 0 0 -1 -1 -1 4 1Limited Reserves $26,159Year 2010 2011 2012 2013 2014 2015 TOTAL

March-15 $0 $0 $260,726 $907,714 $296,420 $153,629 $1,618,489April-15 $0 $0 $244,649 $879,920 $256,942 $161,847 $1,543,358

NET CHGE $0 $0 ($16,077) ($27,794) ($39,478) $8,217 ($75,131)Ltd Incurred $0 $0 $1,227,451 $1,987,273 $601,977 $242,529 $4,059,229

Year 2010 2011 2012 2013 2014 2015 TOTALMarch-15 0 0 15 30 54 36 135April-15 0 0 13 31 38 43 125

NET CHGE 0 0 -2 1 -16 7 -10Limited Reserves $17,898Year 2010 2011 2012 2013 2014 2015 TOTAL

March-15 $0 $0 $355,004 $1,076,713 $693,349 $161,561 $2,286,627April-15 $0 $0 $326,402 $1,077,465 $621,476 $211,887 $2,237,230

NET CHGE $0 $0 ($28,602) $752 ($71,873) $50,325 ($49,397)Ltd Incurred $0 $0 $1,646,230 $2,384,665 $1,281,983 $784,169 $6,097,046

C L A I M C O U N T - O P E N C L A I M S

Burlington County Insurance CommissionCLAIM ACTIVITY REPORT

T O T A L A L L L I N E S C O M B I N E D

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Bur lington County Insur ance CommissionCLAIMS MANAGEMENT REPORT

EXPECTED LOSS RATIO ANALYSIS AS OF Apr il 30, 2015

FUND YEAR 2012 -- LOSSES CAPPED AT RETENTION40 39 28

Budget Actual Actual Actual30-Apr-15 31-Mar-15 30-Apr-14

PROPERTY 124,180 42,202 42,202 33.98% 124,180 100.00% 42,202 42,202 33.98% 124,180 100.00% 26,039 26,039 20.97% 124,180 100.00%GEN LIABILITY 219,452 368,700 368,700 168.01% 202,952 92.48% 355,891 355,891 162.17% 201,776 91.95% 438,010 438,010 199.59% 183,381 83.56%AUTO LIABILITY 68,206 7,877 7,877 11.55% 60,909 89.30% 7,877 7,877 11.55% 60,574 88.81% 7,877 7,877 11.55% 55,286 81.06%WORKER'S COMP 2,058,826 1,257,718 1,227,451 59.62% 2,032,004 98.70% 1,264,513 1,264,513 61.42% 2,029,400 98.57% 1,378,838 1,378,838 66.97% 1,972,244 95.79%TOTAL ALL LINES 2,470,664 1,676,497 1,646,230 66.63% 2,420,045 97.95% 1,670,482 1,670,482 67.61% 2,415,930 97.78% 1,850,765 1,850,765 74.91% 2,335,091 94.51%NET PAYOUT % $1,319,828



PROPERTY 126,664 0 0 0.00% 126,664 100.00% 0 0 0.00% 126,664 100.00% 0 0 0.00% 122,416 96.65%GEN LIABILITY 223,841 355,964 355,964 159.03% 187,049 83.56% 265,964 265,964 118.82% 185,115 82.70% 350,204 350,204 156.45% 151,870 67.85%AUTO LIABILITY 69,570 41,428 41,428 59.55% 56,391 81.06% 41,428 41,428 59.55% 55,674 80.03% 41,100 41,100 59.08% 43,152 62.03%WORKER'S COMP 1,804,203 1,987,273 1,987,273 110.15% 1,728,329 95.79% 2,000,532 2,000,532 110.88% 1,719,926 95.33% 1,645,786 1,645,786 91.22% 1,474,504 81.73%TOTAL ALL LINES 2,224,277 2,384,665 2,384,665 107.21% 2,098,433 94.34% 2,307,923 2,307,923 103.76% 2,087,379 93.85% 2,037,090 2,037,090 91.58% 1,791,941 80.56%NET PAYOUT % $1,307,200



PROPERTY 126,664 2,109 2,109 1.67% 122,416 96.65% 2,109 2,109 1.67% 122,144 96.43% 17,109 17,109 13.51% 37,999 30.00%GEN LIABILITY 223,841 522,012 522,012 233.21% 151,870 67.85% 528,161 528,161 235.95% 147,887 66.07% 158,954 158,954 71.01% 22,384 10.00%AUTO LIABILITY 69,570 155,885 155,885 224.07% 43,152 62.03% 159,774 159,774 229.66% 41,450 59.58% 57,768 57,768 83.04% 6,957 10.00%WORKER'S COMP 1,690,287 601,977 601,977 35.61% 1,381,405 81.73% 624,081 624,081 36.92% 1,329,678 78.67% 161,764 161,764 9.57% 101,417 6.00%TOTAL ALL LINES 2,110,361 1,281,983 1,281,983 60.75% 1,698,842 80.50% 1,314,125 1,314,125 62.27% 1,641,159 77.77% 395,595 395,595 18.75% 168,757 8.00%NET PAYOUT % $660,507

FUND YEAR 2015 -- LOSSES CAPPED AT RETENTION4 3 -8


PROPERTY 117,000 1,271 1,271 1.09% 35,100 30.00% 0 0 0.00% 26,910 23.00% 0 0 N/A N/A N/AGEN LIABILITY 300,000 43,197 43,197 14.40% 30,000 10.00% 2,900 2,900 0.97% 18,000 6.00% 0 0 N/A N/A N/AAUTO LIABILITY 68,000 18,357 18,357 27.00% 6,800 10.00% 13,512 13,512 19.87% 4,080 6.00% 0 0 N/A N/A N/AWORKER'S COMP 1,732,504 242,529 242,529 14.00% 103,950 6.00% 187,431 187,431 10.82% 51,975 3.00% 0 0 N/A N/A N/ATOTAL ALL LINES 2,217,504 305,354 305,354 13.77% 175,850 7.93% 203,843 203,843 9.19% 100,965 4.55% 0 0 N/A N/A N/A

MONTH TARGETED

Unlimited Incurred

Limited Incurred

MONTH TARGETED

31.30%

Unlimited Incurred

Limited Incurred

MONTH TARGETED

Unlimited Incurred

Limited Incurred

MONTH TARGETED

58.77%

Current Last Month Last Year

Current Last Month Last YearUnlimited Incurred

Limited Incurred

MONTH TARGETED

Unlimited Incurred

Limited Incurred

MONTH TARGETED

Unlimited Incurred

Limited Incurred

MONTH TARGETED

Unlimited Incurred

Limited Incurred

MONTH TARGETED

53.42%

Unlimited Incurred

Limited Incurred

MONTH TARGETED

Unlimited Incurred

Limited Incurred

Current Last Month Last Year

MONTH TARGETED

Current Last Month Last YearUnlimited Incurred

Limited Incurred

MONTH TARGETED

Unlimited Incurred

Limited Incurred

MONTH TARGETED

Unlimited Incurred

Limited Incurred

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BURLINGTON COUNTY INSURANCE COMMISSION 9 Campus Drive, Suite 16

Parsippany, NJ 07054 Telephone (201) 881-7632 Fax (201) 881-7633

Date: June 4, 2015 Memo to: Commissioners of the Burlington County Insurance Commission

From: PERMA Risk Management Services Subject: Health Benefit Reports

EXECUTIVE DIRECTOR’S REPORT

2015 BCIC HEALTH BENEFITS BUDGET (6 MONTHS)

At the previous meeting, the Commission introduced a 6 month budget for the 2015 Health Benefits program. Since introduction, the Benefits Program Manager has completed its analysis of pharmacy alternatives and is recommending that this program be self insured with Express Scripts rather than placed with Benecard on a fixed cost basis. The revised budget also reflects the results of the RFP for the medical claims agent. Changes to the budget are underlined in the narrative (page 14)

Motion to open the Public Hearing on the 2015 Health Insurance Budget Discussion of Budget and Assessments Motion to close the Public Hearing Motion to adopt the Health Insurance Program Budget for the Burlington County

Insurance Commission effective July 1, 2015 through December 31, 2015 & Certify the six month Assessments

BENEFITS PROGRAM MANAGER REPORT

MEDICAL THIRD PARTY ADMINISTRATOR RECOMMENDATIONS (page 20)

On behalf of the Burlington County Insurance Commission (BCIC), the Benefit Program Manager (BPM) issued a Request for Proposals (RFP) for a Third Party Administrator for Medical Claims on May 7, 2015. The RFP was sent to Aetna, AmeriHealth and Horizon. Proposals were due on May 22, 2015. The Benefits Program Manager received proposals from AmeriHealth and Horizon. The Health Care industry is region specific. It is important to partner with an administrator who has a presence in your region. AmeriHealth and Horizon should be considered major players in the Burlington County region. Through these administrators your membership will have access to care and highly discounted charges resulting in competitive paid claims.

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Below is a comparison of fees that would be associated with the Commission’s Medical Benefits Offering:

AmeriHealth Horizon Medical Benefits Administration $29.14 $35.00 Claims Fiduciary Included Above $1.25 Disease Management Included Above $3.50 Enhanced Stop Loss Reporting $2.50 $2.50 Case Management $1.50 Included in DM Per Employee Per Month (PEPM) $33.14 $42.25 County, School, & Bridge Enrollment 2,094 2,094 $832,742 $1,061,658 Network Access (60 Employees) $5,234 $0 $837,976 $1,061,658

Difference $223,682

Through our review we picked up some notable services in AmeriHealth’s proposal. AmeriHealth is offering to provide COBRA services at no additional charge. They are also providing a discount guarantee. The discount guarantee is identical to the current County agreement. Horizon’s proposal was complete. They are capable of providing all the basic functions of a TPA. The Burlington County Insurance Commission’s Medical benefit offering must be successful. Success is defined by the cost, service, and employee satisfaction. It is our recommendation to enter into an agreement with AmeriHealth for Medical TPA services. The proposal provides the services in which the Commission had solicited, AmeriHealth’s cost is 21% less than Horizon’s, and finally, almost 2000 of the 2094 employees are currently covered with AmeriHealth. With that said, the disruption to the majority will be minimal if any at all. PHARMACEUTICAL BENEFIT MANAGER RECOMMENDATION

It is the recommendation of the Benefits Program Manager that the BCIC enter into an agreement with the New Jersey Hospital Association/Healthcare Business Solutions, Inc. (NJHA) and Express Scripts (ES) for the management of the BCIC prescription drug program effective July 1, 2015.

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The Benefits Program Manager has performed its due diligence and researched prescription drug costs compared to other pharmaceutical benefit manager’s (PBM’s) and the NJHA through ES has proven itself to consistently offer low cost pharmaceuticals compared to similar vendors in the marketplace. Additionally, the NJHA offers a national network of pharmacy’s that will allow member’s access to pharmacy’s throughout the United States. Last, the NJHA employs the necessary tools, services and technology to manage the BCIC prescription drug program in the most efficient manner available. In lieu of commission the Benefits Program Manager will charge a fee that is the equivalent of $8.00 per member per month. Based on expected enrollment of 2,094 members the annual compensation is approximately $201,024.00 for the 12 month term beginning July 1, 2015. In summary, it is the recommendation of the Benefits Program Manager that the BCIC contract with the NJHA through ES for the contract term beginning July 1, 2015. The recommendation is being made based on several factors:

• Low cost of pharmaceuticals offered.

• Member access to national pharmacy network.

• NJHA ability to manage the program in a cost efficient manner.

MEDICAL STOP LOSS RECOMMENDATION It is the recommendation of the Benefits Program Manager that the BCIC accept the medical stop loss offer from Standard Security Insurance Co. effective July 1, 2015 with a specific stop loss deductible of $250,000 at the following rates: Employee Specific Rate - $33.91 Composite Specific Rate - $54.24 Aggregate Rate - $3.76

The total estimated premium for the plan year beginning 7/1/2015 based on expected enrollment in the BCIC is $1,718,463.25. The premium includes standard industry compensation of 15% or $257,769.49 for the contract period. The compensation to the Benefits Program Manager is the equivalent of $10.26 per employee per month. Standard Insurance Company offered the most competitive pricing and contract terms for the BCIC medical stop loss policy. The following insurance carriers were considered:

• High Mark Life Insurance Company (HM) • PERMA Risk

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• American International Group (AIG) • Berkley Risk • Unimerica • Gerber Life • Companion Life • Standard Security Insurance Company

In summary, after doing its due diligence and researching the market place it is the recommendation of the Benefit Program Manager that the Standard Security Insurance Co. Stop Loss contract be executed by the BCIC for the 12 month term beginning July 1, 2015.

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Burlington County Insurance Commission Health Benefits Program

2015 Budget Adoption

The attached budget includes projections for medical claims, Rx claims, Medicare Advantage premiums, and for reinsurance, contingency, administrative expenses, and federal taxes. The budget covers the period from 7/1/2015 through 12/31/2015. Subsequent budgets will correspond to the calendar year. CLAIM FUNDS John Vataha of Actuarial Advantage is projecting a medical claims budget of $14,245,288. This budget was derived from the claims experience of the three initial members. It reflects trend assumptions of 8% and a claims fluctuation margin of 2%. Claims incurred during the budget period would be covered by the BCIC. It is also proposed that the BCIC assume run-in claims from the pre-existing County program. A preliminary appropriation of $2,000,000 was included in the introduced budget but this estimate was revised by the actuary to $2,340,000. The introduced budget did not include a self insured pool for prescriptions. However, the fixed cost program through Benecard was less favorable than self insuring with Express Scripts. Therefore, an Rx claims fund of $4,908,036 is included in the version for adoption. INSURED AND FIXED RATE PROGRAMS The budget includes funding for a fully insured Medicare Advantage program offered by Aetna. This program will cover Medicare eligible retirees from Burlington County Bridge Commission. It includes Rx coverage, eliminates the need to coordinate coverage with Medicare, and is price competitive due to efficient plan design and subsidies offered by the federal government. STOP LOSS COVERAGE It is proposed by the Benefits Program Manager that the BCIC retain risk on specific claims up to $250,000. Claims above that amount would be ceded to Standard Security. The budget also includes funding for aggregate insurance that would attach if medical claims exceed the budget estimate by 25%. The program has other features that will be explained by the Benefit Program Manager prior to contract award. EXPENSES Over ninety-six percent (96%) of the budget is used for claims, claims adjustment expense, taxes, reinsurance, and insured/fixed cost programs. Administrative costs, excluding claims adjustment expense, represent 2.61% of the budget.

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Some fees are based upon a “per employee per month” (PEPM) basis and are variable with enrollment. Fees that are derived in this manner are:

1. Executive Director - $7 PEPM 2. Enrollment Vendor - $4 PEPM 3. Claims Agent - $33.14 PEPM 4. Benefits Program Manager - $24 PEPM for Medical and $8 PEPM for Rx

The introduced budget did not have the $8 PEPM fee for Rx for the Benefit Program Manager because that fee would have been paid in the form of commissions. Other fees are based upon a fixed monthly or annual cost and do not normally vary with enrollment. Fees that are administered in this manner are:

1. Legal 2. Auditor 3. Treasurer 4. Actuary 5. Data analysis system 6. GASB 45 Reporting (valuation of the liabilities associated with retiree coverage).

All contracts are subject to the BCIC’s contract award processes. TAXES “Affordable Care Act” taxes impacting the BCIC are:

• Patient-Centered Outcomes Research Fee (the “Comparative Effectiveness Fee”) • Transitional Reinsurance Program Contribution

The New Jersey “A4 Retiree Surcharge” is budgeted at 2.6% of the claims fund for the Special Services School District. This tax is included in the claims fund and is not separately listed.

ASSESSMENTS Assessments for claims incurred under the BCIC would be allocated by member entity as follows:

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Monthly assessments will vary with enrollment and will be based upon a traditional 4 tier rate schedule (single, parent children, couple, family). Assessments can also vary along with benefit changes that would be approved by the BCIC and implemented by the local entities. The budget and assessments can also be amended in the future based upon the possible addition of coverage for dental, vision, new members, etc. The County assessment includes a $128 per employee per month charge for medical enrollees and $47.50 for Rx enrollees to account for the difference between current Chapter 78 contributions and the budget. The County run-in assessment has been adjusted based upon an updated actuarial estimate. Once all run in payments are made, the County will be responsible for the actual amounts. The specific method and timing of payment is subject to further discussion and agreement. Until the amount is paid, the amount will represent a receivable or asset on the balance sheet of the BCIC. Respectfully Submitted, PERMA

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Introduced Budget

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Budget Proposed For Adoption

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RESOLUTION NO. 26-15

BURLINGTON COUNTY INSURANCE COMMISSION APPOINTING MEDICAL THIRD PARTY ADMINISTRATOR

WHEREAS, the Burlington County Insurance Commission places the public trust above all else and remains steadfast in its commitment to the highest ethical standards in the conduct of its business on behalf of the taxpayers of Burlington County; and WHEREAS, the Board adopted Bylaws which establish the procedures for obtaining qualifications and/or proposals for professional services contracts; and WHEREAS, said Bylaws further provide that, the Commissioners shall meet and select persons to serve in certain professional positions, including medical third party administrator; and WHEREAS, Request for Qualifications/Request for Proposals from qualified Medical TPAs were solicited and received and reviewed as provided for by statute; and WHEREAS, the BCIC desires to retain the services and enter into the agreements attached hereto for the respective services and the amounts as designated for the year 2015:

AmeriHealth Medical Benefits Administration $29.14 Claims Fiduciary Included Above Disease Management Included Above Enhanced Stop Loss Reporting $2.50 Case Management $1.50 Per Employee Per Month (PEPM) $33.14 County, School, & Bridge Enrollment 2,094 $832,742 Network Access (60 Employees) $5,234 $837,976

WHEREAS, the designated professional has offered to provide the needed specialized services, which constitute “professional services” as defined in the Local Public Contracts Law, N.J.S.A. 40A:11-1 et seq. (the “Law”) for not to exceed the amount as set forth above; and WHEREAS, funds are available for these purposes; now, therefore, be it RESOLVED, by the Burlington County Insurance Commission that the attached Agreement with the Medical TPA is hereby authorized for the period July 1, 2015 through December 31, 2015; and, be it

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FURTHER RESOLVED, that all Agreements approved hereunder have been awarded pursuant to the alternative to the fair and open process and as professional services under N.J.S.A. 40A:11-5(1)(a); and, be it FURTHER RESOLVED, that the Chairperson is hereby authorized to execute and deliver the agreed upon Agreements in accordance with the Rules and Regulations of the Burlington County Insurance Commission; and, be it FURTHER RESOLVED, that a copy of this action shall be printed once in the Burlington County Times within ten (10) days of its passage as required by law. ADOPTED by THE BURLINGTON COUNTY INSURANCE COMMISSION at a properly noticed meeting held on June 4, 2015. ADOPTED: BY:______________________________________________ KENDALL J. COLLINS, CHAIRMAN ATTEST: _______________________________________________

EVE A. CULLINAN, VICE CHAIR

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BURLINGTON COUNTY INSURANCE COMMISSION APPOINTING PHARMACEUTICAL BENEFIT MANAGER

WHEREAS, the Burlington County Insurance Commission places the public trust above all else and remains steadfast in its commitment to the highest ethical standards in the conduct of its business on behalf of the taxpayers of Burlington County; and WHEREAS, the Board adopted Bylaws which establish the procedures for obtaining qualifications and/or proposals for professional services contracts; and WHEREAS, said Bylaws further provide that, the Commissioners shall meet and select persons to serve in certain professional positions, including Pharmaceutical Benefit Manager (PBM) and WHEREAS, Qualified PBMs were reviewed for services and cost; and WHEREAS, the BCIC desires to retain the services and enter into the agreement with the New Jersey Hospital Association/Healthcare Business Solutions, Inc and Express Scripts. WHEREAS, the designated professional has offered to provide the needed specialized services, which constitute “professional services” as defined in the Local Public Contracts Law, N.J.S.A. 40A:11-1 et seq. (the “Law”); WHEREAS, funds are available for these purposes; now, therefore, be it RESOLVED, by the Burlington County Insurance Commission that the attached Agreement with the PBM is hereby authorized for the period July 1, 2015 through December 31, 2015; and, be it FURTHER RESOLVED, that all Agreements approved hereunder have been awarded pursuant to alternative to the fair and open process and as professional services under N.J.S.A. 40A:11-5(1)(a); and, be it FURTHER RESOLVED, that the Chairperson is hereby authorized to execute and deliver the approved upon Agreements in accordance with the Rules and Regulations of the Burlington County Insurance Commission; and, be it FURTHER RESOLVED, that a copy of this action shall be printed once in the Burlington County Times within ten (10) days of its passage as required by law. ADOPTED by THE BURLINGTON COUNTY INSURANCE COMMISSION at a properly noticed meeting held on June 4, 2015. ADOPTED: BY:______________________________________________ KENDALL J. COLLINS, CHAIRMAN ATTEST: _______________________________________________


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BURLINGTON COUNTY INSURANCE COMMISSION APPOINTING MEDICAL STOP LOSS PROVIDER

WHEREAS, the Burlington County Insurance Commission places the public trust above all else and remains steadfast in its commitment to the highest ethical standards in the conduct of its business on behalf of the taxpayers of Burlington County; and WHEREAS, the Board adopted Bylaws which establish the procedures for obtaining qualifications and/or proposals for professional services contracts; and WHEREAS, said Bylaws further provide that, the Commissioners shall meet and select persons to serve in certain professional positions, including Medical Stop Loss provider and WHEREAS, Qualified Stop Loss Companies were reviewed for services and cost; and WHEREAS, the BCIC desires to retain the services and enter into the agreement with the Standard Security Insurance Company at the following rates: Employee Specific Rate - $33.91 Composite Specific Rate - $54.24 Aggregate Rate - $3.76 WHEREAS, the designated carrier. has offered to provide the needed specialized services, which constitute “insurance coverage” as defined in the Local Public Contracts Law, N.J.S.A. 40A:11-1 et seq. (the “Law”) for the not to exceed amounts as set forth above; and WHEREAS, funds are available for these purposes; now, therefore, be it RESOLVED, by the Burlington County Insurance Commission that the attached Agreement with the Stop Loss Carrier is hereby authorized for the period July 1, 2015 through December 31, 2015; and, be it FURTHER RESOLVED, that all Agreements approved hereunder have been awarded pursuant to the alternative to the fair and open process and as professional services under N.J.S.A. 40A:11-5(1)(a); and, be it FURTHER RESOLVED, that the Chairperson is hereby authorized to execute and deliver the agreed upon Agreements in accordance with the Rules and Regulations of the Burlington County Insurance Commission; and, be it FURTHER RESOLVED, that a copy of this action shall be printed once in the Burlington County Times within ten (10) days of its passage as required by law. ADOPTED by THE BURLINGTON COUNTY INSURANCE COMMISSION at a properly noticed meeting held on June 4, 2015.

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ADOPTED: BY:______________________________________________ KENDALL J. COLLINS, CHAIRMAN ATTEST: _______________________________________________


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BURLINGTON COUNTY INSURANCE COMMISSION BILLS LIST

Resolution No. 29-15 JUNE 2015 WHEREAS, the Treasurer has certified that funding is available to pay the following bills:

BE IT RESOLVED that the Burlington County Insurance Fund Commission, hereby authorizes the Commission Treasurer to issue warrants in payment of the following claims; and

FURTHER, that this authorization shall be made a permanent part of the records of the Commission. FUND YEAR 2015 CheckNumber VendorName Comment InvoiceAmount

000102 000102 PMA COMPANIES VOIDED 000103 000103 PERMA RISK MANAGEMENT SERVICES EXECUTIVE DIRECTOR FEE 06/2015 14,242.24 000103 PERMA RISK MANAGEMENT SERVICES POSTAGE FEE 04/2015 2.03 14,244.27 000104 000104 CRAIG, ANNIN & BAXTER, LLP ATTORNEY FEE 05/27/2015 1,340.00 1,340.00 000105 000105 THE ACTUARIAL ADVANTAGE ACTUARIAL SERVICES FEE 06/2015 582.50 582.50 000106 000106 COURIER TIMES INC. ACCT:9736596410 - 05/01/15 - RM CHNG MTG 36.10 36.10 000107 000107 PAUL'S CUSTOM AWARD & TROPHIES CLOCK W/ENGRAVING - 4/30/2015 110.00 110.00 000108 000108 EJA/CAPACITY INSUR AGENCY LLC RMC FEE BURLINGTON CNTY BOSS 2 OF 3 2015 2,299.80 2,299.80 000109 000109 PMA COMPANIES CLAIMS HANDLING FEE 05/2015 9,166.00 9,166.00

TOTAL PAYMENTS FY 2015 27,778.67

TOTAL PAYMENTS ALL FUND YEARS $ 27,778.67 _____________________________________ Chairperson Attest: ____________________________________ Dated:______________________________ I hereby certify the availability of sufficient unencumbered funds in the proper accounts to fully pay the above claims. ____________________________________ Treasurer

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BURLINGTO N CO UNTY INSURANCE CO MMISSIO N SUMMARY O F CASH TRANSACTIO NS - ALL FUND YEARS CO MBINED

Current Fund Year: 2015Month Ending: March

Property Liability Auto Worker's Comp NJ CEL Admin TO TALOPEN BALANCE 337,740.77 (216,579.13) 98,612.24 3,338,947.95 141,977.29 115,440.29 3,816,139.41RECEIPTSAssessments 44,397.87 101,999.69 23,119.93 544,191.63 672,662.07 108,994.92 1,495,366.11Refunds 0.00 150.00 0.00 714.76 0.00 0.00 864.76Invest Pymnts 182.50 9.73 53.28 1,804.23 76.72 0.00 2,126.46Invest Adj 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Subtotal Invest 182.50 9.73 53.28 1,804.23 76.72 0.00 2,126.46Other * 0.00 106,870.76 0.00 0.00 0.00 9,879.64 116,750.40 TOTAL 44,580.37 209,030.18 23,173.21 546,710.62 672,738.79 118,874.56 1,615,107.73

EXPENSESClaims Transfers 0.00 52,025.18 12,307.92 50,313.11 0.00 0.00 114,646.21

Expenses 0.00 0.00 0.00 0.00 0.00 1,237,264.94 1,237,264.94Other * 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL 0.00 52,025.18 12,307.92 50,313.11 0.00 1,237,264.94 1,351,911.15END BALANCE 382,321.14 (59,574.13) 109,477.53 3,835,345.46 814,716.08 (1,002,950.09) 4,079,335.99

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SUMMARY O F CASH AND INVESTMENT INSTRUMENTSBURLINGTO N CO UNTY INSURANCE CO MMISSIO N ALL FUND YEARS CO MBINEDCURRENT MO NTH MarchCURRENT FUND YEAR 2015

Description:Ins Comm

General A/C -Investors

ASO Claims-WC & Liab

ID Number:Maturity (Yrs)

Purchase Yield:

TO TAL for All Accts & instruments

O pening Cash & Investment Balance 3,816,138.73$ 3,816,128.72$ 10.01$ O pening Interest Accrual Balance -$ -$ -$

1 Interest Accrued and/or Interest Cost $0.00 $0.00 $0.002 Interest Accrued - discounted Instr.s $0.00 $0.00 $0.003 (Amortization and/or Interest Cost) $0.00 $0.00 $0.004 Accretion $0.00 $0.00 $0.005 Interest Paid - Cash Instr.s $2,126.45 $2,126.45 $0.006 Interest Paid - Term Instr.s $0.00 $0.00 $0.007 Realized Gain (Loss) $0.00 $0.00 $0.008 Net Investment Income $2,126.45 $2,126.45 $0.009 Deposits - Purchases $1,730,314.86 $1,612,981.27 $117,333.59

10 (Withdrawals - Sales) -$1,469,244.74 -$1,354,598.53 -$114,646.21

Ending Cash & Investment Balance $4,079,335.30 $4,076,637.91 $2,697.39Ending Interest Accrual Balance $0.00 $0.00 $0.00Plus Outstanding Checks $1,216,865.79 $1,209,294.20 $7,571.59(Less Deposits in Transit) $0.00 $0.00 $0.00Balance per Bank $5,296,201.09 $5,285,932.11 $10,268.98

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BURLINGTON COUNTY INSURANCE COMMISSION SAFETY DIRECTOR’S REPORT

TO: Fund Commissioners FROM: J.A. Montgomery Risk Control, Safety Director DATE: May 28, 2015

MAY - JUNE 2015 RISK CONTROL ACTIVITIES

MEETINGS ATTENDED / LOSS CONTROL VISITS CONDUCTED

• May 7: Attended the BCIC meeting in Mount Holly.

• May 19: Attended the BCIC Claims Committee meeting in Mount Holly.

• May 26 & 27: Conducted an OSHA 10 Hour General Industry course for Burlington County Bridge Commission.

UPCOMING MEETINGS / LOSS CONTROL VISITS PLANNED

• June 4: Plan to attend the BCIC meeting in Mount Holly.

• June 16: Plan to attend the BCIC Claims Committee meeting in Mount Holly.

CEL MEDIA LIBRARY USAGE (2014-2015):

No videos were utilized in 2014 and 2015.

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BURLINGTON COUNTY INSURANCE COMMISSION

RESOLUTION FOR CLOSED SESSION

WHEREAS, Section 8 of the Open Public Meetings Act, Chapter 231, P.L. 1975 permits the exclusion of the public from a meeting in certain circumstances; and

WHEREAS, this public body is of the opinion that such circumstances presently exist; now, therefore,

BE IT RESOLVED by the Burlington County Insurance Commission, County of Burlington, State of New Jersey, as follows:

1. The public shall be excluded from discussion of the hereinafter-specified subject matter.

2. The general nature of the subject matter to be discussed:

CONTRACTS: LITIGATION: 9029 PERSONNEL:

3. It is anticipated at this time that the above subject matter will be made public when the members of the Burlington County Insurance Commission have made final determination.

4. This resolution shall take effect immediately. ADOPTED by THE BURLINGTON COUNTY INSURANCE COMMISSION at a properly noticed meeting held on June 4, 2015. ADOPTED: BY:______________________________________________ KENDALL J. COLLINS, CHAIRMAN ATTEST: ____________________________________________ EVE A. CULLINAN, VICE CHAIR

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APPENDIX I

1 May 7, 2015 Burlington County Insurance Commission OPEN Minutes

URLINGTON COUNTY INSURANCE COMMISSION OPEN MINUTES

MEETING – May 7, 2015 County Administration Building

49 Rancocas Road Mt Holly, NJ 08060

2:00 PM

Meeting was called to order by the Executive Director. Ms. Dodd read the Open Public Meetings notice into record. ROLL CALL OF COMMISSIONERS: Kendall J. Collins Present Eve A. Cullinan Present Tami Granata Present FUND PROFESSIONALS PRESENT: Executive Director PERMA Risk Management Services Joseph Hrubash Claims Services PMA Management Corp. Christina Grabowski Conner Strong & Buckelew Michelle Leighton Attorney CraigAnninBaxter Law Robert Baxter Treasurer Edward Troy Underwriting Manager Conner Strong & Buckelew Ed Scioli Safety Director J.A. Montgomery Risk Control Glenn Prince Employee Benefits PERMA Risk Management Services Paul Laracy Emily Koval AJM Insurance Management Tony Mahon Innovative Risk Solutions, Inc. Sean Gormley Risk Management Consultant (BOSS) EJA/Capacity Insurance Agency Steve Walsh


ALSO PRESENT: Cathy Dodd, PERMA Risk Management Services APPROVAL OF MINUTES: OPEN & CLOSED MINUTES OF APRIL 2, 2015 After a brief discussion on how to approve the minutes from the last meeting, it was agreed the Executive Director would review the action items from the last meeting and then the new Board of Commissioners would approve the items as a block. Open and Closed Minutes of February 5, 2015 Resolution 15-15 Amendment to the 2015 Risk Management Plan Motion to Approve Certificate of Insurance Issuance Report Motion to Renew the Employee Dishonesty Coverage, $1,131 Motion to Authorize the Executive Director to Issue RFQ’s Motion to Amend Contracts Resolution 16-15, March Bill List Motion to Open and Close the Meeting to the Public Resolution 18-15, Closed Session Motion to Return to Open Session Motion to Approve PAR # 0861

MOTION TO APPROVE ACTION ITEMS OF APRIL 2, 2015

Moved: Chairman Collins Second: Commissioner Cullinan Vote: 3 Ayes, 0 Nayes

CORRESPONDENCE: NONE Executive Director asked everyone in the room to introduce themselves for the new Commissioners.

COMMITTEE REPORTS: SAFETY COMMITTEE: Mr. Prince reported the Safety Committee meeting was scheduled to meet on June 18, 2015. Mr. Prince advised he spoke with Dan Childress, the County’s Safety and Compliance Officer, who would reserve a room for the meeting and send out an agenda. CLAIMS COMMITTEE: Ms. Leighton advised the Claims Committee met via teleconference on April 21st and discussed the PARS that would be presented during closed session. EXECUTIVE DIRECTOR REPORT: Executive Director advised he had several action items for his report. MICHAEL D. SMITH: Executive Director reported on behalf of the Commission he wanted to present Mr. Smith with a Commemorative Clock to thank him for his support and guidance with


establishing the Commission and wanted to wish him success at this new position. Mr. Collins indicated he wanted to personally thank Mr. Smith noting he was a fantastic Chairman and was key in establishing the BCIC which has been a huge success. Mr. Collins pointed out the BCIC would not have been established without Mr. Smith. Executive Director advised he would arrange to hand deliver the clock to Mr. Smith. WELCOME NE COMMISSIONERS: Executive Director advised his office received a copy of the Burlington County Freeholder’s resolution appointing Eve Cullinan and Tami Granata as Commissioners of the Burlington County Insurance Commission to fill the unexpired term of Paul Drayton and Michael Smith. Executive Director indicated he would accept nominations for the position of Chairman and Vice Chairman. Ms. Cullinan advised she would like to nominate Kendall J. Collins as the Chairman.

MOTION TO APPROVE THE NOMINATION OF KENDAL J. COLLINS AS CHAIRMAN

Moved: Commissioner Cullinan Second: Commissioner Granata Vote: 3 Ayes, 0 Nayes

Mr. Collins advised he would like to nominate Eve Cullinan as Vice Chair.

MOTION TO APPROVE THE NOMINATION OF EVE CULLINAN AS VICE CHAIR

Moved: Chairman Collins Second: Commissioner Granata Vote: 3 Ayes, 0 Nayes

Executive Director reported the third Commissioner would be Tami Granata. Executive Director referred to Resolution 19-15, Appointment of Chairman and Vice Chair which was included in the agenda. Executive Director indicated the names of the Chairman and Vice Chair would be added and requested a motion to approve Resolution 19-15.

MOTION TO APPROVE RESOLUTION 19-15 APPOINTMENT OF CHAIRMAN AND VICE CHAIRMAN


COMMISSION BANK ACCOUNTS: Executive Director reported the authorized signatures on the Commission Bank Account needed to be amended. Executive Director advised Mr. Drayton and Mr. Smith were deleted and Ms. Cullinan and Ms. Granata were added. Executive Director requested a motion to approve Resolution 20-15, Designating Authorized Signatures for Commission Bank Account which was included in the agenda.


MOTION TO APPROVE RESOLUTION 20-15 DESIGNATING AUTHORIZED SIGNATURES FOR COMMISSION BANK ACCOUNT


APPOINTMENT OF A COMMISSIONER TO THE CEL: Executive Director referred to a copy of Resolution 21-15, appointing Kendall J. Collins as the Burlington County Insurance Commission representative to the New Jersey Counties Excess Joint Insurance Fund which was included in the agenda. Executive Director reported Mr. Collins would replace Mr. Smith for the remainder of 2015 and requested a motion.

MOTION TO APPORVE RESOLUTION 21-15 APPOINTING A COMMISSINER TO THE NEW JERSEY COUNTIES EXCESS JOINT INSURANCE FUND


CERTIFICATE OF INSURANCE ISSUANCE REPORT: Executive Director reported on the Certificate of Insurance Report for the period of 3/26/15 to 4/29/15. There were 5 certificates of insurance issued during this period.

MOTION TO APPROVE THE CERTIFICATE OF INSURANCE REPORT


NJ EXCESS COUNTIES INSURANCE FUND (CELJIF): Executive Director reported the CEL held their meeting on April 23, 2015 and a summary report was included in the agenda. Executive Director advised Michael Smith reported he was leaving Burlington County and the Fund Commissioners elected Ross Angilella as Chairman of the CEL. The Secretary election was tabled until next month. Executive Director reported Bowman & Company was appointed to conduct the 2014 audit and Citta, Holzapfel & Zabarsky, PA was appointed for Litigation Services for a one year term. Executive Director pointed out the next CEL meeting was scheduled for April 23rd at 1:00 PM. BCIC FINANCIAL FAST TRACK PROPERTY AND CASUALTY FINANCIAL FAST TRACK: Executive Director reported the February 2015 Financial Fast Track was included in the agenda. The Commission had a surplus of $752,751 as of February 28, 2015. Executive Director referred to line 8 of the report, “Investment in Joint Venture” and indicated $467,380 was Burlington County Insurance Commission’s share of the equity in the CEL.


NJ CEL PROPERTY AND CASUALTY FINANCIAL FAST TRACK: Executive Director reported the January & February Financial Fast Tracks for the NJ CEL were included in the agenda. As of February 28, 2015 the CEL had a surplus of $ $5,802,522. CLAIMS TRACKING REPORTS: Executive Director reported the agenda included the two new claim monitoring reports as of March 31, 2015. Executive Director advised the “Claims Activity Report” was designed to look for any inconsistencies in the amount of claims set up or changes in reserves on a monthly basis. Executive Director noted he reviewed the report and it did not show anything unusual. Executive Director also reviewed the “Claims Management Report Expected Loss Ratio Analysis” report as of March 31, 2015. Executive Director reported that the 2015 year is running higher than the Actuary projected as of March 31st. Also, the Commission losses were running lower in 2014 versus the Actuary projection. The 2012 fund year is a more mature year and was a good year. Executive Director asked if anyone had any questions regarding the reports. 2015 PROPERTY & CASUALTY ASSESSMENT BILLS: Executive Director advised the second Property & Casualty Assessment payment was due on May 15, 2015. Executive Director indicated the payments should be sent direct to the Commission Treasurer, Edward Troy, at the County. 2015 EXCESS INSURANCE AND ANCILLARY COVERAGE POLICIES: Executive Director reported the CEL Underwriting Manager distributed an e-mail providing the login information and instructions to access the Conner Strong & Buckelew website to view the insurance policies and endorsements. Executive Director advised if anyone had any difficulty in accessing the site they should contact the PERMA office. COUNTY’S LEGACY CLAIMS: Executive Director reported he was working with Mr. Troy on including the County’s legacy claims within the Commission. BCIC MEETING SCHEDULE: Executive Director reported the Commission was scheduled to meet on June 4th and a July meeting was not scheduled. Executive Director advised however, a July meeting might need to be scheduled as a result of the Employee Benefit initiative.

Executive Director advised that concluded his report unless anyone had any questions.

Executive Director's Report Made Part of Minutes

EMPLOYEE BENEFITS REPORT:

HEALTH BENEFITS PROGRAM: At the previous meeting, the Commission approved a Health Benefits Program to be offered (but not limited) to the County, the Bridge Commission and the Special Services School District effective July 1, 2015. Mr. Laracy reported that since then, the professionals have begun implementation and had a few items for the Commissioners to review and approve, if deemed appropriate. Mr. Laracy thanked the Commission and professionals for allowing this process to move smooth.


RFQ RESPONSES: At the April meeting, the Commission approved releasing an RFQ for Actuary and Benefits Program Manager. Mr. Laracy said the Actuary should be separate from that of the Property and Casualty Actuary. A response was received by Actuarial Solutions, John Vataha, who works on all the PERMA administered Health Insurance Funds since 2000. The Actuarial Solutions proposal was $17,500 for six months which is reflected in the budget

Mr. Laracy said one response was also received for Benefits Program Manager by AJM Insurance Management/Innovative Risk Solutions, Inc. They are the current advisors to the programs. These two firms worked on the feasibility study with PERMA. Their response included a fee request of $24 PEPM.

Full responses were attached with the distribution of this agenda.

MOTION TO APPOINT JOHN VATAHA AS COMMISSION ACTUARY TO THE HEALTH BENEFITS PROGRAM.

Moved: Chairman Collins

Second: Commissioner Cullinan Vote: Unanimous

MOTION TO APPOINT AJM INSURANCE / INNOVATIVE RISK SOLUTIONS, INC. AS BENEFITS PROGRAM MANAGER.



CONTRACT AWARD PROCESSES: Mr. Laracy said at the July meeting, all appointments made to date along with compensation terms will be scheduled for ratification with a formal resolution as part of the Organizational agenda for the health benefits program. He indicated that the Benefits Program Manager is responsible for developing and managing RFP processes for insured program, claims agents, and stop loss coverage. Their work has been underway as part of the feasibility study and continues.

2015 6 MONTH PRO RATA BUDGET INTRODUCTION: The agenda included Budget Introduction materials which describes each line of the 6 month pro rata budget and outlines the assessments by member. Mr. Laracy said the 2016 budget will be developed and voted upon around the same time as the Property and Casualty budget. He indicated that the expenses are about 2.6% of the total budget, which is significantly less than a fully insured program. In response to Executive Director, Mr. Laracy said the three members in the program so far are Burlington County, BC Bridge Commission, and BC Special Services School District. He specified that the run out claims, claims incurred but not paid prior to inception, are included in the budget, but not reflected in the assessments. The Commission will pay the claims and assess the individual entity over time. The details of this payment are being reviewed by the


Commission Attorney and Treasurer. Any surplus gained at the end of this year and future years may be used to pay this off.

MOTION TO INTRODUCE THE 6 MONTH 2015 HEALTH BENEFITS BUDGET IN THE AMOUNT OF $22,939,004 AND SCHEDULE A PUBLIC HEARING ON JUNE 4, 2015 AT THE COUNTY ADMINISTRATION BUILDING, ROOM 107, FIRST FLOOR, 49 RANCOCAS ROAD, MT. HOLLY, NJ 08060 AT 2:00 PM



RISK MANAGEMENT PLAN: A proposed “Risk Management Plan” for health benefits, separate from the property and casualty plan, is included. Mr. Laracy said this document addresses the stop loss arrangements, claim appeal processes, dividend policy, and supplemental assessment protocol, among other key operating processes.

MOTION TO APPROVE THE BURLINGTON COUNTY INSURANCE COMMISSION HEALTH BENEFITS RISK MANAGEMENT PLAN, AS PRESENTED.



CONTRACT LANGUAGE: Mr. Laracy introduced the standard contract language and required HIPPA agreement to be included in all Professional Services Contracts that provide services to the Health Benefits Program. He said the language is similar to that of the current Commission Professional Service Contracts.

MOTION TO ADOPT RESOLUTION 22-15 APPROVING STANDARD CONTRACT LANGUAGE AND HIPAA SERVICE AGREEMENT IN PROFESSIONAL SERVICE CONTRACTS FOR THE HEALTH BENEFITS PROGRAM.

Moved: Chairman Collins Second: Commissioner Cullinan Vote: Unanimous

TREASURER REPORT: Mr. Troy advised he reviewed the May Bill List and recommended its approval.


MOTION TO APPROVE RESOLUTION 24-15, MAY BILL LIST IN THE AMOUNT OF $25,035.70


Executive Director advised the Treasurer’s monthly reports were included in the agenda. ATTORNEY: Mr. Baxter advised he had some items to discuss during closed session. CLAIMS SERVICE. Mr. Grabowski referred to the WC Claims by Quarter Report for the month of April. Ms. Grabowski reviewed the number of losses for each of the entities. Ms. Grabowski also reviewed the Medical Cost Containment Savings Report. Ms. Grabowski advised the total invoiced was $197,920 and the total amount saved was $122,956 or 62% and the net savings after fees was $96,809. Ms. Grabowski advised that concluded her report unless anyone had any questions. CEL SAFETY DIRECTOR: Mr. Prince reviewed the March – May 2015 Risk Control Activity Report which was included in the agenda. Mr. Prince advised they were offering the OSHA 10 Course at the Bridge Commission and would also offer the class to the Building & Grounds Department, Highway Department and DPW Department. In response to Executive Director’s comment, Mr. Prince gave an overview of the BRIT online training program available to the County. Mr. Prince advised the program should be rolled out next month and was currently in the testing phase. Executive Director noted this resource was available to members of the CEL from the excess carrier with no additional cost. Mr. Prince advised the program should be rolled out at the June 18th Safety Committee meeting.

OLD BUSINESS: None

NEW BUSINESS: None PUBLIC COMMENT:

MOTION TO OPEN MEETING TO THE PUBLIC


Seeing no members of the public wishing to speak, Executive Director asked for a motion to close the public comment portion of the meeting.


MOTION TO CLOSE MEETING TO THE PUBLIC


CLOSED SESSION: Executive Director read Resolution 25-15, Resolution for Closed Session, and requested a Motion for Executive Session (in accordance with the Open Public Meetings Act, N.J.S.A. 10:4-12) to discuss payment authority requests. It is noted that the Benefit Team attending left the meeting at this time.

MOTION TO APPROVE RESOLUTION 25-15 FOR CLOSED SESSION

Motion: Chairman Collins Second: Commissioner Cullinan

Vote: 3 Ayes, 0 Nayes

MOTION TO RETURN TO OPEN SESSION

Motion Chairman Collins Second: Commissioner Cullinan


MOTION TO APPROVE PARS DISCUSSED IN CLOSED SESSION,

Motion: Chairman Collins Second: Commissioner Cullinan


MOTION TO ADJOURN: Moved: Chairman Collins Second: Commissioner Cullinan Vote: 3 Ayes, 0 Nayes Executive Director advised the next Commission meeting was scheduled for June 4, 2015 at 2:00 PM MEETING ADJOURNED: 2:44 PM Minutes prepared by: Cathy Dodd, Assisting Secretary and Emily Koval (Employee Benefits)

BURLINGTON COUNTY INSURANCE COMMISSION ......2015/06/04 · All operations usual to County 5/4/2015...

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