Membership Advantages and Testimonials · 2019-06-18 · Membership Advantages and Testimonials...

Membership Advantages and Testimonials

Presented by:

Bob Solarz, Executive Director

Carol Bigham, Director of Member Services

Ric Schultz, Principal Consultant, Insurance Buyers’ Council

June 21, 2019

©2019 Delaware Valley Trusts. Proprietary and Confidential Information. 2

Elected officials, especially newly elected ones, are asking Managers and Finance Directors for an overview of the Delaware Valley Trusts.

They want to know what’s behind the DVT budget line items and why it’s advantageous for their public entity to be in the Delaware Valley Trusts.

This presentation is specifically designed to help members educate their elected officials on the membership advantages of the Property & Liability Trust.


• DVPLT is an alternative to commercial

insurance coverage for qualified, PA local

governmental entities.

• DVPLT was formed in 1989 as a trust under the

PA Intergovernmental Cooperation Law.

• DVPLT’s trust structure is:

• Non-profit and tax exempt

• Member-owned and controlled

What is DVPLT


• DVPLT coverage is tailored to manage the

unique exposures of public entities

• DVPLT operates solely for the benefit of its

membership (local governmental entities).

• 2019 - 63 members in seven PA counties

• Stable rates often well below those offered by

the commercial market

What is DVPLT


• Liability reinsurance through Government

Entities Mutual (GEM). DVPLT is a part owner

of GEM along with 16 other risk pools across

the US.

• Property reinsurance is provided through Alliant

Insurance’s Public Entity Property Insurance

Program which covers public entities and pools

across the US.

• Group purchasing power of 63 members –

economies of scale realized in annual expense

budget and members’ annual contributions.

What is DVPLT


• DVPLT holds a significant long term net cost

advantage to commercial insurance.

• Strong surplus offers many significant

advantages, including stability and investment

income.

• Excess funds returned to members through:

Cash Dividends

Multi-trust Discounts

Rate Stabilization Fund Allocations

Loss Control Grants

What is DVPLT


Sample # 1 - Medium Size; Long-Term Member

Item TY 2009 TY 2010 TY 2011 TY 2012 TY 2013 TY 2014 TY 2015 TY 2016 TY 2017 TY 2018 Totals

RSF as of

1/1/2019

Premium

Contributions 182,129 187,433 181,298 192,222 196,105 195,028 188,326 190,320 178,961 178,931 1,870,753

RSF Avail.

Balance

Multi-Trust

Discounts 5,464 5,623 5,439 5,767 7,844 7,801 7,533 7,613 8,849 8,860 70,793 50,277

RSF Amounts

Taken 50,644 41,504 53,589 50,849 54,501 0 112,884 40,029 31,913 0 435,913

RSF

Remaining

Dividends 51,095 80,695 59,535 53,200 58,270 50,510 51,095 47,970 59,935 35,550 547,855 20,183

Safety Grant

Allocations 2,946 3,482 3,482 3,658 3,658 3,825 3,825 3,805 3,805 3,537 36,023 Percent Net

Net Cost of

Membership 71,981 56,129 59,253 78,748 71,832 132,892 12,989 90,903 74,459 130,984 780,170 42%

Sample # 2 - Medium Size; Recent Member


RSF as of

1/1/2019

Premium

Contributions 96,225 165,256 174,142 435,623

RSF Avail.

Balance

Multi-Trust

Discounts 2,887 6,448 6,740 16,075 2,243

RSF Amounts

Taken 0 0 0 0

RSF

Remaining

Dividends 0 0 3,290 3,290 1,700

Safety Grant

Allocations 1,500 1,500 3,222 6,222 Percent Net

Net Cost of

Membership 0 0 0 0 0 0 0 91,838 157,308 160,890 410,036 94%

Net Cost of Membership – 10 Years


Net Cost of Membership – 10 Years

Sample # 3 - Medium Size; Long-Term Member


RSF

as of

1/1/19

Premium

Contributions 123,862 127,732 134,103 147,442 158,503 171,057 176,354 180,407 190,233 192,645 1,602,338

RSF Avail.

Balance

Multi-Trust

Discounts 3,716 3,832 4,023 4,423 6,340 6,842 7,054 7,216 9,320 9,459 62,225 54,553

RSF Amounts

Taken 0 50,000 20,000 35,000 40,000 40,000 54,000 57,537 40,000 20,000 356,537

RSF

Remaining

Dividends 11,920 18,765 13,575 14,560 13,205 18,130 27,950 19,100 36,160 24,635 198,000 15,049

Safety Grant

Allocations 2,280 2,368 2,368 2,706 2,706 3,092 3,092 3,563 3,563 3,726 29,464 Percent Net

Net Cost of

Membership 105,946 52,767 94,137 90,753 96,252 102,993 84,258 92,991 101,190 134,825 956,112 60%

Entire Trust


RSF

as of

1/1/19

Premium

Contributions 8,513,895 8,151,810 8,143,392 8,759,232 9,157,574 9,469,515 9,585,841 9,807,590 11,082,772 11,809,755 94,481,376

RSF Avail.

Balance

Multi-Trust

Discounts 211,865 209,496 218,526 236,056 334,038 353,201 370,737 381,745 496,728 532,606 3,344,999 2,433,217

RSF Amounts

Taken 1,597,723 1,568,305 2,186,069 1,945,008 2,212,978 2,201,673 1,974,599 1,731,072 1,630,115 1,109,125 18,156,667

RSF

Remaining

Dividends 1,566,630 2,545,660 2,034,940 2,059,395 2,013,960 2,008,265 1,971,245 1,997,415 2,529,365 2,029,355 20,756,230 999,416

Safety Grant

Allocations 152,727 165,181 166,681 169,731 171,231 188,376 188,376 205,639 213,139 228,166 1,849,247 Percent Net

Net Cost of

Membership 4,984,950 3,663,168 3,537,176 4,349,042 4,425,367 4,718,000 5,080,884 5,491,719 6,213,425 7,910,503 50,374,233 53%


• $10 million in liability limits for General, Auto,

Law Enforcement and Public Officials.

• Real and personal property limit of $1 billion per

occurrence.

• Flood $150,000,000 annual aggregate for all

Trust participants with sublimit of $75,000,000

annual aggregate for Zones A, AE, V and all 100

year floodplains. Earthquake $50,000,000

annual aggregate for all Trust participants.

DVPLT Coverage


• Boiler $100,000,000 each accident.

• Crime: Public employee dishonesty $2 million

each loss.

• Cyber coverage (third party and first party) with

overall limits of $3 million each claim, $3 million

aggregate.

DVPLT Coverage

©2019 Delaware Valley Trusts. Proprietary and Confidential Information.12

DVPLT Coverage is a Better Fit for Municipal Risk


DVPLT Commercial Insurance

Property

$1 Billion Overall Per Occurrence LimitBlanket limit equal to Total Values or limits by

location

Extra Expense limit of $50M Often low sublimits of $100,000 or less

Sewer Back Up - No Sublimit Often low sublimits of $100,000 or less

Flood - $150M Annual Aggregate

for all Trust members

Usually excluded but will sometimes provide low

aggregate limits such as $1M, $2M excess of

NFIP

Zone A Flood - $75M Annual Aggregate

for all Trust membersUsually excluded, period

Earthquake - $50M Annual Aggregate

for all Trust members

Usually excluded but will sometimes provide low

aggregate limits such as $1M, $2M

Deductible - combined for property damage

and time element

Often separate; inland marine stacking

deductibles on top of property deductibles

Mobile (contractors) Equipment - covered on

replacement cost basis under Property program

limits

Covered on ACV basis subject to limit

per item as scheduled

Mobile (contractors) Equipment –

Unscheduled items coveredScheduled items only


DVPLT Commercial Insurance

Crime

Limits of $2M

Low limits of $100,000 or less; does not

recognize cumulative nature of dishonesty

losses

Computer Fraud and Funds Transfer Fraud

includedOften Not Covered

Coverage excess of individual bond req's.No coverage for those required to be individually

bonded

Liability

Total limits of $10M ($2M primary with $8M

excess)

For smaller and medium size prospects, limits

total less than $10M; usually $4M or $6M

Abuse or molestation covered without sublimits

Low sublimits usually $1M or less – Important

given parks and recreation exposures with

children

Sewer back up covered without sublimits Low sublimits of usually $500,000 or less

Circuses, carnivals or fairs covered (including

amusement rides)

Excluded or restricted, especially on umbrella

policies

Athletic participation coveredExcluded or restricted, especially on umbrella

policies


• In-house claims adjudication & litigation

management

• Customized loss control services

• Exclusive value-added services including

best-in-class training programs

On-site

DVT Online University

DVD Lending Library

Advantages of MembershipValue-Added Benefits


• NFPA Fire & ICC International Building E-Codes

• PA motor vehicle record checks

General employment

Annual US DOT checks for CDL drivers

• PA criminal background checks

General employment screening

Required by the PA CPSL



• Police pre-hire psychological evaluations

• Pre-employment assessment testing

• Law Enforcement Policy Management

• Boiler and machinery inspections

• Local Government IT Services


Member Testimonials

“A key component of the

Trusts is the expert

guidance they provide

addressing our specific

municipal government

issues. In addition,

continual and pertinent

training provided by the

Trusts keeps us apprised

of trends and issues.”


Donald D. Delamater, ManagerLower Providence Township


Member Testimonials

“I have worked with several other Trusts in other communities, and can unequivocally say that the combination of low costs and excellent service really separates DVPLT (and DVTrusts) from the others.”

Jon Hammer, Manager

Franconia Township


Member Testimonials

“The loss control grants have been highly valuable

as a way of funding our safety committee’s

recommendations. Since these items are usually

above what was budgeted for, it is good to give

our safety committee the power to move forward

with projects/products to safeguard our Borough’s

assets and employees.”John Ramsey, Finance DirectorLansdale Borough


Member Testimonials

“The DVT Online University

is more than a valued

added service, it’s actually

a gold mine of learning

opportunity. The hidden

treasure is the ability to

customize administrative

controls and establish a

learning curriculum by

departments or job types to

ensure comprehensive

training to all departments.”Mark Santoleri, Risk Control ManagerLower Merion Township


Member Testimonials

“The Trust’s value-added programs such as

training, legal guidance and loss control resources

are more than just benefits – they set the Trusts

apart from any other liability coverage provider!”

John Davis, ManagerDoylestown Borough


Member Testimonials

Stephanie Cecco, ManagerConshohocken Borough

“To say it is a privilege to be part of theDelaware Valley Trusts is an understatement.As a municipality, the health and safety ofresidents, businesses, and visitors areparamount. Additionally, we are also chargedwith the fiscally responsible utilization oftaxpayer dollars. In other words, it is our dutyto provide the best services at the best price.Membership in the Delaware Valley Trustsprovides the tools, services, coverage, andresources needed to not only reach but alsoexceed this goal. As elected officials andadministrators, we benefit greatly. Moreimportantly, our taxpayers benefit.”

Thank you.

Membership Advantages and Testimonials · 2019-06-18 · Membership Advantages and Testimonials...

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