Risk Mgmt Advisory Committee Mtg Min 9-22-10
MEETING MINUTES:
New Hanover County Attorney’s Office – Risk Management
BUSINESS:
Review and discuss the renewals for New Hanover County Airport, Cape Fear Community College,
New Hanover County Board of Education, City of Wilmington, and Southeastern Center for Mental Health/Developmental Disabilities/Substance Abuse Services. Review and discuss actual renewal
figures for New Hanover County.
TIME AND PLACE:
September 22, 2010, 9:00 a.m.
New Hanover County Government Center
Finance Conference Room #500
230 Government Center Drive
Wilmington,
NC 28403
ATTENDANCE:
Committee members and staff in attendance:
George Chadwick III
Ron Woodruff
Tiffany Allen – Risk Manager
Jennifer Stancil – Risk Management Specialist
Guest
in Attendance:
None Present
ORDER OF BUSINESS:
Although minutes approval is not required, as a precaution, Risk Manager Allen asked each member to review the Minutes of the June
15, 2010 meeting and advise of any corrections or additions of which there were none.
Risk Manager Allen advised that the New Hanover County Airport Liability policy was marketed. One agency withdrew prior to offering a quote, two others missed the Request for Proposal
deadline and the incumbent agent, USI, offered several quotes with the least expensive coming from Ace. The USI/Ace quote for $21,400 was down from the prior year’s price of $29,350
and offered the same limits of liability, as shown in Section 2 of the handout materials. Risk Manager Allen advised the committee that the Airport expressed an interest in increasing
coverage from $75 million to $100 million, but preferred to wait and possibly increase coverage in the next few years.
As a follow up to the June meeting, Risk Manager Allen reviewed
the final (actual) premiums for New Hanover County’s policies that expired on 7/1/10 that were non-renewed with the North Carolina Association of County Commissioners (NCACC) and placed
with Travelers and Lexington insurance companies. (Tab 3 of the handout) Factors taken into account for placing coverage with other carriers included pricing, claims handling and management/adminis
tration of the pool. Risk Manager Allen explained that the price is lower overall, but distributed differently from NCACC to Travelers/Lexington. Also noted was that NCACC did not
apply any loss cost factors to the FY10 policy, which inflated this year’s pricing – especially for property insurance.
Risk Manager Allen reviewed Cape Fear Community College’s upcoming
renewals, as noted in the handout under tab 4. The risk management office just began working on the November renewals, but expects pricing to remain flat for the Protection & Indemnity
policy and commercial property. Any change to the property pricing should be from increased values. CFCC’s property is insured through the North Carolina Department of Public Instruction’s
property pool, which generally increases values by 3% each year. The renewal pricing will also reflect the $10.2 million parking deck addition. The new parking deck on Nutt Street
is under construction; however, none are expected to be completed before the end of the year.
Risk Manger Allen briefly discussed the New Hanover County Board of Education’s crime policy
which is expected to move to the “governmental” policy form next year.
Risk Manager Allen discussed the upcoming City of Wilmington renewals on 10/1/2010. The City has asked for their
renewal dates to coincide with their fiscal year, so all policies will be migrated to a 7/1 renewal/expiration. Anticipated changes for the City’s property policy may include an additional
windstorm deductible percentage for the convention center. The Hartford seems to want a 5% deductible for windstorm, so other alternatives like purchasing windstorm deductible buy back
coverage is being considered. Member Chadwick thought the North Carolina League of Municipalities might be a good alternative to property insurance for the City. Risk Manager Allen
stated she would check into the League offering a quote, but noted they have not been competitive in the property market for risks of the City’s size and location.
Risk Manager Allen
discussed the pending changes to Southeastern Center for Mental Health, Developmental Disabilities and Substance Abuse Services’ professional liability policy. She stated their operations
have changed tremendously over the last few years and the professional liability policy must be changed to match their new operations. Southeastern was previously involved in treatment;
however, now they are a local management entity only (referrals) with no
in-house treatment. The company writing their current professional liability insurance will does not insure local management entities, so a new policy will be written. Southeastern
will purchase tail coverage for their expiring professional liability policy. Quotes for the new policy and tail are forthcoming.
Risk Manager Allen reviewed the new contract procedures
for New Hanover County (tab 5).
Risk Manager Allen turned the meeting over to County Manager Bruce Shell and County Attorney Wanda Copley who presented George Chadwick a plaque in recognition
of his 15 years of service to the New Hanover County Risk Management Advisory Committee and Insurance Advisory Committee.
Risk Manager Allen asked if there were any other items of business
to be brought before the Committee. There were none and the meeting was adjourned.