Loading...
HomeMy WebLinkAboutMEETING MINUTES 021605 MEETING MINUTES: New Hanover County Finance Office – Risk Management BUSINESS: Review and discuss renewal information for City of Wilmington, Cape Fear Community College, and New Hanover County Airport Authority. Review and discuss the Claim Review of New Hanover County, the City of Wilmington, and the marketing strategy of 2005-06 accounts. TIME AND PLACE: February 16, 2005 9:00 a.m. New Hanover County Library – Main Branch Wilmington Room Wilmington, NC 28401 ATTENDANCE: Those in attendance were George Chadwick III, Charlotte Hicks, Walker Taylor IV, Deborah Watts, Risk Manager Brown, Risk Management Specialist Allen and Bruce Shell-New Hanover County Finance Director. ORDER OF BUSINESS: Risk Manager Anne Brown first welcomed all members and directed everyone’s attention to the meeting materials, which included an Agenda, Minutes of the June 23, 2004 meeting, and renewal, marketing, and claim data for various entities. Although minutes approval is not required, as a precaution, Risk Manager Brown asked each member to review the Minutes of the June 23, 2004 meeting and advise of any corrections or additions. No corrections or additions were suggested. Risk Manager Brown reviewed the City’s 10/01/05 renewal information with the Committee. The Risk Management office marketed the City’s account last year; therefore, this year’s proposals for the City are from the current carrier only. Member Watts inquired as to the premium amount difference for Umbrella Liability as shown on page 11 of the handout. Risk Manager Brown advised the City purchased additional Umbrella limits during 2003-04 as a reaction to the Moore case. The City reassessed their decision and chose to renew with lower umbrella limits. Risk Manager Brown reviewed the City’s Property renewal noting the premium will increase with the addition of the Riverwalk excluding windstorm coverage. Risk Manager Brown advised that Cape Fear Community College renewed on 11/26/04. In addition to the renewal quote from Liberty Mutual, we marketed the account to Utica National through Surry Insurance (who specializes in school coverage). The quote with Utica National included the General Liability for the Day Care and is tailored to schools. The Property Policy renewed with the Department of Public Instruction (DPI). The Workers Compensation policy renewed with Liberty Mutual. All other coverages moved from Liberty Mutual to Utica National because of the added coverage and lower premium. Additional building(s) at the Northeast Campus will be added upon construction completion. Finance Director Shell added that the County, City, and Cape Fear Community College are working together to build a public safety-training center at the Northeast Campus. No confirmed plans at this moment, but it will move forward in the future. Risk Manager Brown advised the New Hanover County Airport Authority Airport Liability policy renewed on 08/04/04 with no significant changes. Member Chadwick asked about the war, hi-jacking and other perils exclusion. Risk Manager Brown explained the Airport could purchase this coverage for an additional premium of $25,000. The Airport chose to decline this coverage because the exposure really falls under the airlines. Additionally, the insurance company may cancel this coverage at anytime during the policy period. Next, the Committee reviewed New Hanover County’s loss runs. Risk Manager Brown mentioned the Rummer case is still pending, with depositions being taken next month. Finance Director asked if the State Bureau of Investigation report absolves us of liability. Member Watts advised there may not be a criminal charge but there is still the possibility of civil action. Member Watts added the County is certainly in a better position if no wrongdoing is found. Risk Manager Brown updated the Committee on the County’s mold claim. The Court of Appeals refused to hear the case, which upheld the lower courts decision that governmental immunity applied since the County did not have insurance for this claim. The County put money in escrow to cover any amount due to NCACC since the there was question as to whether this claim is covered. The county exhausted the environmental impairment limit. The remaining amount was paid under the general liability section. NCACC chose not to charge the County back for the portion paid under the general liability section. The charges were for environmental testing and attorney fees. Risk Manager Brown stated the County and NCACC went into mediation and settled the Ebony Boles claim. Also, the claim involving claimant Zachary Cheesman will be dismissed soon. Risk Manager Brown continued by reviewing the City of Wilmington’s losses. They took two hits on workers’ compensation with a knee claim for Hersey and an amputated leg for Mahon. The County has a Workers’ Compensation review scheduled for next week. Risk Manager Brown noted the third party administration’s (PMA) financial rating has improved. Risk Manager Brown briefly discussed the addition of Housing and Economic Opportunities to the Risk Management Department’s list of clients. HEO is responsible for rebuilding Dove Meadows. The current exposure is vacant land. The Committee discussed the Housing Authority of the City of Wilmington’s potential move of coverages to the N.C. Housing Authority Risk Retention Pool. Additionally, the Committee discussed the need to transition the Housing Authority away from Risk Management Services. The Committee agreed that Contract with the Housing Authority should be non-renewed. Risk Manager Brown reviewed the Risk Management Department’s projected revenues for 2005-06. (The information in the handout was for 2004-05. The current projection is $174,221). Risk Manager Brown advised the Risk Management Department is working on the 07/01/05 renewals for New Hanover County, Southeastern Center for MH/DD/SAS, Housing Authority of the City of Wilmington, New Hanover County Airport Authority and the 10/01/05 renewal of the City of Wilmington. The Risk Management Department tried bidding out New Hanover County’s renewal last year, but to no avail. Public Risk Underwriters is looking to quote for us, but we don’t believe there are other viable sources for quote. Southeastern Center for MH/DD/SAS will go out to bid since it hasn’t been bid since 2000. There aren’t many markets for New Hanover County Airport Authority’s property. AIG may quote, but with a high deductible. The City of Wilmington will go out to market for all coverages except property. Risk Manager Brown discussed the Department’s broker selection process. Risk Manager Brown advised member Charlotte Hicks term expires in September 2005. Member Hicks advised she wants to continue serving on the Committee. Risk Manager Brown asked if there were any other items of business to be brought before the Committee. There were none and the meeting was adjourned.