COUNTY ADMINISTRATOR
220 NORTH MAIN STREET
P.O. BOX 8645
ANN ARBOR, MICHIGAN 48107-8645
(734)996-3055
FAX (734)994-2592
| TO: | Al Robinson, Chair
Ways & Means Committee |
| THROUGH: | Robert E. Guenzel
County Administrator |
| FROM: | R. L. BEECKMAN, RISK MANAGEMENT
CONSULTANT
MONICA BOOTE, BENEFITS ADMINISTRATOR |
| DATE: | January 20, 1999 |
| SUBJECT: | WORKER’S COMPENSATION EXCESS INSURANCE COVERAGE FOR 1999-00 |
Board Action Requested:
To accept the offer for excess insurance coverage for Worker’s Disability Compensation for the 1999-00 year.
Background:
On February 1, 1999, the existing excess worker’s compensation insurance for Washtenaw County will expire. The County, through R. L. Beeckman & Company, it’s Risk Management Consultants and Verna McDaniel, Human Resources Director, received the renewal submission for the excess worker’s compensation insurance from Employers Reinsurance Corporation. This cost is a reduction from last years cost due to early return to work of employees and a reduction of the number of claims filed.
The bidding process was waived after careful review of the renewals submission for the excess worker's compensation insurance from Employer's Reinsurance Corporation, the market conditions, reviewing the coverage options available in both self insured and fully insured programs, and the bidding procedure costs, it was determined that the cost of the services comparison favored the self insured program over the fully insured program.
Therefore, it has been determined that the excess insurance coverage be renewed at a reduced premium rate, with Employer's Reinsurance Corporation at the following levels of coverage:
Insurer – Employers Reinsurance Co. statutory $25,094.00
Specific excess insurance above a $300,000
Retention with an aggregate of $641,734.00
Third Party Administrator for Claims Services – Alexis $32,500.00
Total Cost $57,594.00
Discussions:
The insurance coverage will be used to protect the County from certain worker’s compensation losses that may arise over the next year.
The insurance policies will be in effect from February 1, 1999 through February 1, 2000. At which time, new bids will be solicited based on the needs of the County at that time.
Impact on Human Resources:
There will be no impact on Human Resources
Impact on Budget:
There will be no impact on the budget.
Impact on other County Departments or outside Agencies:
There will be no impact on other county departments or outside agencies.
Conformity to County Policies:
This request conforms to County policy.
A RESOLUTION ACCEPTING OFFER FOR EXCESS INSURANCECOVERAGE FOR WORKER’S DISABILITY COMPENSATION FOR THE 1999-00 PERIOD
WASHTENAW COUNTY BOARD OF COMMISSIONERS
January 20, 1998
WHEREAS, the present contract for the worker’s excess insurance expires February 1, 1999; and
WHEREAS, the proposal has been received and reviewed by the County Administrator’s Office and the Department of Human Resources; and
WHEREAS, after review of the proposal, recommendations have been made to renew the excess insurance with Employers Reinsurance Corporation for the period February 1, 1999 through February 1, 2000; and
WHEREAS, the recommendation is to purchase statutory specific excess insurance with $641,734 aggregate insurance; and
WHEREAS, this matter has been reviewed by Corporation Counsel, the Finance Office, the County Administrator’s Office and Ways & Means Committee
NOW THEREFORE BE IT RESOLVED that the Washtenaw County Board of Commissioners hereby approves the renewal of the excess insurance coverage for Worker’s Compensation for Washtenaw County for the period February 1, 1999 through February 1, 2000:
Insurer – Employers Reinsurance Co. statutory $25,094.00
Specific excess insurance above a $300,000
Retention with an aggregate of $641,734.00
Third Party Administrator for Claims Services – Alexis $32,500.00
Total Cost $57,594.00
