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NORTII
<br />
<br />From:
<br />
<br />Date:
<br />
<br />Subject:
<br />
<br />Board of Commissioners
<br />
<br />Blair Bennett /tlT~
<br />
<br />October 9, 2000
<br />
<br />Status Report on Liability and Property Insurance Fund
<br />
<br />The decision was made beginning July 1, 1997 to become self-insured for Liability, Property, Bonds, Professional
<br />Liability and Boiler Insurance. We set up a special corporation, known as Carolina Governmental Alliance, which
<br />has it's own articles of incorporation, in which to administer this particular type of insurance coverage. Currently
<br />Rowan County is the only other member, but we can allow other counties to participate. Each county is ultimately
<br />responsible for their own claims; however, we administer and track expenses and revenues through one bank
<br />account. We meet quarterly with our consultants to review claims and study current issues. Please notice in the
<br />compilation below that actual claims paid for the fiscal year amounted to $599,033.29. These payments were
<br />allocated back to the particular year in which the claims actually occurred. Those allocations were as follows: 1998 -
<br />$429,467.88, 1999 - $112,057.58 and 2000 - $57,507.83. Also the FY 1998 indicates a saving loss, but that is only
<br />because of the timing of the claim. The County had a jail related claim in 1998 that resulted in a general liability
<br />payment of $374,903.63. The County was only responsible for $50,000 of that claim, however we did not receive
<br />insurance reimbursement in the amount of $324,904 until 2000. Since we report claims paid against the actual year
<br />the claim first occurred; that caused what appears to be a saving deficit for the claim year. Our other major expense
<br />is excess insurance, amounting to $184,487.50 for the current year. This is purchased to protect the pool from
<br />catastrophic loss. Currently, there are no other significant claims outstanding for Cabarrus County that will have an
<br />impact on the past three years performance. Considering we have only had three years of operations using the self-
<br />insurance fund this has certainly been financially beneficial for Cabarrus County.
<br />
<br />Departmental Revenues
<br />Interest Earned CGA
<br />Interest Earned FCNB
<br />Insurance Reimbursements
<br />Total Revenue
<br />
<br />1998 1999 2000 Inception to Date
<br />$449,164.22 $495,996.52 $593,738.71 $1,538,899.45
<br />10,441.47 22,149.36 37,256.50 69,847.33
<br />136.20 219.32 123.52 479.04
<br />21,854.52 12,502.50 327,005.61 361,362.63
<br />481,596.4t 530,867.70 958,124.34 1,970,588.45
<br />
<br />Claim administration and consultant
<br />Excess insurance purchased
<br />General Liability Claims Paid
<br />Auto Liability Claims Paid
<br />Operating expenses
<br />Total expenditures
<br />
<br />Savings
<br />
<br /> 9,500.00 10,500.00 10,500.00 30,500.00
<br /> 152,101.00 176,075.13 184,487.50 512,663.63
<br /> 412,370.71 15,232.70 10,568.47 438,171.88
<br /> 17,097.17 96,824.88 46,939.36 160,861.41
<br /> 351.65 559.60 517.23 1,428.48
<br /> 591,420.53 299192.31 253,012.56 1,143,625.40
<br />
<br />$(109,824.12) $231,675.39 $705,111.78 $826,963.05
<br />
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