AG 1998 08 17 - Laserfiche WebLink

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MEMO R ANDUM To~ From: Date: Subject: Board of Commissioners Blair Bennett ~ July 23, 1998 Status Report on Liability and Property Insurance Fund The decision was made beginning July 1, 1997 to become self-insured for Liability, Property, Bonds, Professional Liability and Boiler Insurance. We set up a special corporation, known as Carolina Governmental Alliance, which has it's own articles of incorporation, in which to administer this particular type of insurance coverage. Currently Rowan County is also the only other member, but we can allow other counties to participate. Each county is ultimately responsible for their own claims; however, we administer and track expenses and revenues through one bank account. We meet quarterly with our consultants to review claims and study current issues. Please notice in the compilation below that actual claims for the past year only mounted to $48,480.10. Our other major expense is excess insurance, amounting to $152,101.00, purchased to protect the pool from catastrophic loss. In the future the amount of excess insurance coverage needed should decrease, thereby reducing that expense; however, this will probably be five years or more in the future. This has certainly been an excellent start for the first year's operations of the Self-insured Fund as evidenced below. Revenue Received: Revenues received from departments Interest earned Insurance Reimbursements Total revenue $449,164.22 10,441.47 21,854.52 481,460.21 Expenditures Incurred: Claim administration and consultant Excess insurance purchased Claims paid Claim reserves Operating expenses Total Expenditures Savings Finance Department l~O. Box 707 * Concord, NC 28026-0707 · (704) 788-8104 9,500.00 152,101.00 48,480.10 1,800.00 326.65 212,207.75 $269,252,46